Monday’s gains gave U.S. technology shares a pause after a punishing week, but upcoming results will help investors assess whether artificial intelligence (AI) investments can generate enough profit to meet expectations, CNBC reported.
The Associated Press put the Nasdaq Composite’s Monday advance at 1.1% and the S&P 500’s at 0.4%; the Dow Jones Industrial Average fell 0.1%. CNBC said chipmakers and large technology companies led the rise. The iShares MSCI South Korea ETF climbed 4%, CNBC reported; iShares lists SK Hynix and Samsung Electronics among the fund’s largest holdings. For the five trading days ending Oct. 16, AP figures show losses of 4.5% for the Nasdaq and 1.9% for the S&P 500. EconoTimes previously reported on investor scrutiny of Meta’s AI spending after the technology selloff.
CNBC said 85% of 47 S&P 500 companies with third-quarter results available by Monday had beaten expectations. FactSet’s Oct. 16 update put projected year-over-year earnings growth for the index at 29%. That blended estimate combines results already reported with estimates for companies that have yet to announce. Most technology company results were still ahead, CNBC reported.
Ajay Rajadhyaksha, global chairman of research at Barclays, wrote that the firm had shifted to a more neutral stance on risk assets as market trading weakened, while keeping its view of fundamentals steady. CNBC reported that Fairlead Strategies founder Katie Stockton saw further losses in the S&P 500 or Nasdaq Composite as a possible signal of a deeper decline. She said widespread short-term oversold readings could help the indexes find support.
Ron Albahary, chief investment officer at LNW, told CNBC that earnings could widen the performance gap among AI-related companies. He said debt used by neocloud operators to expand could leave them vulnerable even if other AI-linked shares rise. Albahary framed the current concern around profit expectations, contrasting it with the valuation bubble of the internet era.
Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, told CNBC he viewed the selloff as a warning rather than the end of the AI trade, with pressure possibly lasting days or weeks. He said expectations remained too optimistic and that political debate over AI and data centers could weigh on the sector through the U.S. midterm elections.
SpaceX is scheduled to post third-quarter results after the market closes Oct. 20, according to the company. Meta Platforms and Tesla have scheduled their results after the close Oct. 21, company announcements show.
