U.S. stock futures edged lower on Tuesday as investors weighed comments from Federal Reserve officials, fresh corporate earnings, and an increasingly uncertain economic outlook. The session followed a mixed start to November trading, with tech names under renewed pressure after Palantir’s post-earnings decline.
Futures Slide
By 02:58 ET, Dow futures were down 313 points (0.7%), S&P 500 futures lost 61 points (0.9%), and Nasdaq 100 futures dropped 311 points (1.2%).
Wall Street ended Monday mixed — the Dow Jones Industrial Average slipped, while the S&P 500 and Nasdaq Composite posted modest gains.
Investors continued to assess recent dealmaking activity. Kimberly-Clark (NASDAQ:KMB) announced plans to acquire Kenvue (NYSE:KVUE) — maker of Band-Aid — in a $40 billion deal, though analysts flagged potential legal risks. Meanwhile, OpenAI revealed a $38 billion agreement with Amazon (NASDAQ:AMZN) to expand its cloud capabilities, marking the ChatGPT creator’s first major move since its corporate restructuring last week.
Fed Comments Add to Market Uncertainty
Divisions among Fed officials have become more visible. In her first remarks since President Donald Trump’s failed attempt to remove her, Fed Governor Lisa Cook said there was ongoing debate over the central bank’s dual mandate and noted that December’s meeting is a “live” one, indicating uncertainty about the next rate decision.
Similarly, San Francisco Fed President Mary Daly described last week’s rate cut as a form of “insurance” against further labor market weakness but emphasized she would keep an “open mind” ahead of next month’s meeting.
Palantir Shares Fall Despite Strong Quarter
Palantir (NASDAQ:PLTR) shares dropped in extended trading, despite the company reporting record third-quarter revenue and profit that exceeded expectations. The firm, known for its defense and data analytics software, posted net profit of $475.6 million on $1.18 billion in sales, both above forecasts.
CEO Alex Karp said the company is “now producing more profit in a single quarter than it did in revenue not long ago.” Palantir also guided for stronger-than-expected fourth-quarter sales, boosted by rising AI demand.
Even so, the stock’s 175% surge this year has raised concerns about lofty valuations in AI-related equities, dragging down other major tech names in Europe during early trading.
AMD Set to Report Results
Advanced Micro Devices (NASDAQ:AMD) will report its latest quarterly results after the bell, joining the growing list of AI chipmakers releasing earnings amid a wave of new deals in the sector.
According to Reuters, the U.S. Department of Energy has launched a $1 billion partnership with AMD to build two supercomputers for advanced research in medicine and national security. The company also recently announced a multi-year supply agreement with OpenAI, which could generate billions in annual revenue and grant the AI firm a 10% stake in AMD.
Executives at AMD — a top rival to Nvidia — called the partnership “certainly transformative” for both companies and the wider AI industry. AMD shares have climbed over 115% this year, reflecting investor enthusiasm for the sector.
BP Tops Profit Expectations
BP (NYSE:BP) reported third-quarter adjusted net income of $2.21 billion, above forecasts of $2.02 billion, as stronger refining margins helped offset lower oil prices. The company maintained its $750 million share buyback and expects to complete $5 billion in asset disposals this year.
“We’ve delivered another quarter of good performance across the business with operations continuing to run well,” said CEO Murray Auchincloss. “We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency,” he added.
BP’s net debt stood at $26.05 billion, slightly higher than last year’s $24.27 billion, as the company continues its strategic reset to streamline operations and improve returns.
Norway’s Wealth Fund Rejects Musk’s $1 Trillion Tesla Pay Deal
The Norwegian sovereign wealth fund, the world’s largest, said it will vote against Tesla’s (NASDAQ:TSLA) proposed $1 trillion compensation package for CEO Elon Musk, citing governance concerns.
The fund stated that while it “appreciate[s] the significant value created under Mr. Musk’s visionary role,” it is “concerned about the total size of the award, dilution, and lack of mitigation of key person risk.”
Holding a 1.2% stake in Tesla, the fund ranks as the company’s sixth-largest institutional investor. Other major shareholders — including BlackRock, Vanguard, and State Street — have not yet disclosed their voting intentions.
Tesla will hold its annual shareholder meeting later this week, where the results of the vote will be announced. Under the proposed plan, Musk would receive an additional 12% equity stake if he succeeds in driving Tesla’s valuation to $8.5 trillion within the next decade — a goal tied to the company’s pivot toward AI and robotics.
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