Equities: What do mixed tech signals and falling futures indicate? – Danske Bank

Equity futures have come under pressure as overnight earnings sentiment weakened, with Nasdaq and S&P 500 contracts moving lower alongside the Kospi. Meta’s higher spending plans and Tesla’s reduced capex guidance contributed to the weaker sentiment. This follows what the Danske Research Team characterises as a constructive Wednesday session for global equities, during which both the S&P 500 and Nasdaq advanced.

Why have futures softened after a constructive cash session?

"Wednesday was ultimately a constructive session for equities rising 0.7%, with the S&P 500 up 0.6% and Nasdaq gaining 1.1%."

"The overnight earnings picture, however, has been less convincing to markets."

"Meta raised its spending outlook and announced new AI initiatives, while Tesla moved in the opposite direction, lowering its 2026 capex target to USD20bn from above USD25bn."

"The two stocks also moved in opposite directions in post-market trading."

"So, while Meta shares gained after hours, the broader signal from big tech was not strong enough to keep the AI momentum going."

"Nasdaq futures are down 1.2% this morning and S&P 500 futures are down 0.6%, while the Kospi is also trading lower."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)