Stock futures point mostly lower as AI bubble fears persist; AMD shares decline despite strong results

Stock futures were mostly lower on Wednesday, the record 36th day of a US government shutdown, after major indexes fell yesterday on concerns about an artificial intelligence bubble.

Futures tied to the tech-heavy Nasdaq and S&P 500 fell 0.3% and 0.2%, respectively, while contracts tied to the blue-chip Dow Jones Industrial Average were little changed.

With government economic data releases frozen due to the lockdown, investors will pay extra attention to this morning’s ADP employment report, which is expected to show the private sector added 22,000 jobs in October after a decline of 32,000 jobs in September. The shutdown is expected to delay the release of the US October jobs report on Friday.

Yesterday, all indexes finished in the red, with the Nasdaq down 2% as shares of Palantir Technologies (PLTR) fell 8% even though the AI ​​software company reported record quarterly results and raised its full-year revenue forecast. Palantir shares, which entered Wednesday up more than 150% this year, fell another 1.5% before the bell.

Likewise, shares of Advanced Micro Devices (AMD) fell 3% even though the company late Tuesday reported record quarterly results above analysts’ expectations as rising demand for artificial intelligence helped boost sales of its data center chips.

In post-earnings moves, Pinterest (PINS) fell 18%, Super Micro Computer (SMCI) fell 7%, McDonald’s (MCD) advanced 0.6%, Humana (HUM) fell 4%, and US-listed Novo Nordisk (NVO) shares were little changed.

Bitcoin, which yesterday fell below $100,000 for the first time since June, was trading around $102,500, up from an intraday low of under $99,000. There was little change in the US dollar index, which measures the value of the US currency against a basket of foreign currencies, at 100.18.

The 10-year Treasury yield, which affects interest rates on all types of consumer loans, fell to 4.08% from 4.09% at yesterday’s close. Gold futures rose 0.4% to $3,975 an ounce, while West Texas Intermediate crude futures, the US crude oil benchmark, fell 0.3% to $60.35 a barrel.