Reuters reported Nasdaq 100 futures fell as Amazon's $42.4 billion trailing-year free-cash-flow outflow and Intel's 2027 cash-flow warning revived investor concern over the cost of AI investment.
At 4:04 a.m. ET (08:04 UTC) Friday, Oct. 30, Nasdaq 100 E-mini futures were down 640 points, or 2.16%, Reuters reported. The outlet also reported S&P 500 E-minis down 1% and Dow E-minis down 0.05%; Amazon shares were down 7.2% and Intel shares 25% in premarket trading.
Amazon reported free cash flow of negative $42.4 billion for the 12 months ended Sept. 30, compared with positive $14.8 billion in the year-earlier period. The company attributed the shift mainly to a $94.8 billion year-over-year increase in net purchases of property and equipment, after accounting for proceeds from sales and incentives. Amazon said AI investment primarily drove the increase.
Amazon maintained its 2026 forecast of about $220 billion in cash capital expenditures. On the Oct. 29 earnings call, Amazon CEO Andy Jassy said spending in 2027 would be meaningfully higher but gave no amount. Third-quarter sales totaled $201.9 billion, and Amazon Web Services sales rose 39.3% to $46 billion.
Intel’s third-quarter revenue rose 21% to $16.5 billion. Its Data Center and AI unit generated $7.3 billion, up 78%, while the Client Computing and Physical AI Group recorded $8.1 billion, down 5%. Intel reported $5.1 billion in operating cash flow and $1.639 billion in adjusted free cash flow for the quarter.
Intel CFO David Zinsner said on the Oct. 29 earnings call that spending on growth and manufacturing changes would likely leave the company without positive free cash flow in 2027.
The Federal Reserve held its target range at 3.75% to 4% on Oct. 28, while two members favored a quarter-point increase. The Fed’s next scheduled policy meeting is Dec. 8-9.
