U.S. stock index futures pointed lower early Thursday morning as market participants weighed the newest quarterly figures from major technology heavyweights Tesla and Meta Platforms, alongside renewed signs of softening international demand.
Futures tied to the tech-heavy Nasdaq 100 declined 0.6 percent, while contracts tracking the S&P 500 shed 0.4 percent, according to TradingView. Dow Jones Industrial Average futures slipped 0.3 percent, signaling a modest retreat following a positive midweek session on Wall Street.
Tech Giants Deliver Mixed After-Hours Reactions
The premarket pullback came on the heels of notable late-day moves from two of the market’s prominent mega-cap companies. Tesla shares fell more than 3 percent during after-hours trading, TradingView reported. The decline in the electric vehicle maker occurred even though its financial results topped expectations for both revenue and profit.
Conversely, Meta Platforms saw its shares advance more than 2 percent in extended trading. The social media parent delivered third-quarter revenue that surpassed Wall Street projections and issued an upbeat financial forecast for the fourth quarter.
The choppy reaction disrupted momentum established during Wednesday’s regular trading hours, when the Nasdaq Composite gained 1.05 percent. That earlier rally had been fueled by upbeat corporate reports from companies including Super Micro Computer and SpaceX, which had bolstered optimism regarding sustained spending on artificial intelligence infrastructure.
Global Luxury Takes a Hit From China
Sentiment across international markets also faced headwinds from European luxury goods, where Birkin bag maker Hermès dropped roughly 7 percent to sit at the very bottom of the regional Stoxx 600 index, CNBC reported.
The French luxury house reported total revenue of 4.1 billion euros, or approximately $4.6 billion, representing a 4.3 percent increase for its third quarter. While Hermès logged sales expansion across Europe, Japan and the Americas, its performance suffered from slumping demand among consumers in China, as well as minor decelerations in France and the Middle East.
Sales in the company’s ready-to-wear and accessories sector declined, alongside dropping sales in its watch division. In an earnings call cited by CNBC, Chief Financial Officer Eric du Halgouet pointed to declining store traffic in China as a key factor hitting specific product lines.
“Back to China now, what we see is that it’s the volume divisions that are suffering, so fashion accessories, for example, and also watches and shoes,” du Halgouet said, noting that higher price points helped cushion the blow. “It has to do with a drop in footfall that we have been able to offset with greater value, which is the strength of Hermès.”
Du Halgouet added that while Hermès has “reinforced security and safety” for boutique staff in Paris amid recent street protests, the business has not yet determined the full consequences for tourism and retail operations.
What Investors Are Watching Next
Trading desks now face a heavy schedule of corporate balance sheets to determine if broader market momentum can stabilize. Investors are set to examine quarterly reports from a diverse slate of U.S. corporations on Thursday, including Procter & Gamble, Western Digital and defense contractor Lockheed Martin.
Whether consumer defensive, semiconductor storage and aerospace firms can counter early tech weakness remains the main question as regular trading gets underway.
