Asian stocks were mixed in early Thursday trading on October 22, while US equity-index futures declined as contrasting investment plans from Tesla and Meta Platforms tested confidence in this week’s artificial intelligence-led rebound. Rising oil prices added to the unsettled backdrop as Middle East tensions intensified.
Key Takeaways
- Nasdaq 100 futures slipped 0.6% and S&P 500 futures fell 0.4% in early Asian trading.
- Meta raised the lower end of its 2026 capital-spending outlook, while Tesla reduced its annual investment forecast.
- Brent rose 1% to above $110 a barrel as a deadly attack on a Saudi oil field heightened supply concerns.
Table of Contents
- Asian stocks diverge as US futures retreat
- Investment outlooks sharpen the AI funding debate
- Oil adds another source of market uncertainty
- Conclusion
Asian stocks diverge as US futures retreat
South Korean shares fell 0.2%, while Japanese stocks edged higher. The uneven regional performance followed mixed megacap earnings that left investors weighing the growth potential of AI against the expense of financing its expansion.
Tesla shares dropped 3.1% in after-hours trading after the automaker lowered its capital-spending forecast. Meta moved in the opposite direction, gaining 2% after hours as it increased its planned commitment to AI infrastructure.
Matt Orton, chief market strategist at Raymond James Investment Management, described earnings as the central market driver, highlighting tension between AI companies’ growth trajectories and the industry’s ability to fund them.
Investment outlooks sharpen the AI funding debate
Meta said Wednesday that its 2026 capital expenditures would total $135 billion to $145 billion, raising the bottom of its previous range from $130 billion. Tesla, meanwhile, put spending at around $20 billion this year, reversing an earlier increase in its target to more than $25 billion.
The results come amid concerns that substantial investment in data centers and computing capacity could take longer to deliver returns. That leaves corporate earnings as a test of whether growth can sustain enthusiasm for the AI trade.
BlackRock Chief Executive Larry Fink warned at the Berlin Global Dialogue on Wednesday that delays in building data centers could keep computing expensive, add inflationary pressure and threaten economic growth. Faster construction, he argued, would expand capacity and lower computing costs.
Oil adds another source of market uncertainty
West Texas Intermediate crude climbed toward $98 a barrel after trading across a $4 range Wednesday. Brent gained 1% to above $110. Treasuries had also fallen during the New York session.
A deadly attack on a Saudi oil field raised concerns about potential supply disruptions, even as exports through the Strait of Hormuz have accelerated in recent months. The US State Department ordered non-emergency personnel and their families to leave Saudi Arabia because of the growing threat from Houthi militants in neighboring Yemen.
Conclusion
The early-session split left markets balancing two immediate pressures: whether earnings can justify the scale of AI investment, and whether escalating Middle East tensions will further disrupt oil supplies.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
