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US STOCKS-Wall Street futures dip after AI rout, telecoms slide

By Reuters News

Oct 23 (Reuters) - Wall Street futures ticked lower on Friday as caution prevailed after a sharp selloff in AI-linked stocks over concerns about the sector's massive funding requirements, while telecom shares slid on fears of increased competition from SpaceX.

AT&T T.N, Verizon VZ.N and T-Mobile TMUS.O were down over 3% in premarket trading after a report said SpaceX SPCX.O was in talks with cellular infrastructure companies about launching a nationwide wireless carrier program. US cell tower operators, however, gained from this news, with Crown Castle CCI.N up 8.5% and American Tower AMT.N up 5.6%.

SpaceX shares gained 2.2%.

AI-related shares swung sharply this week, first coming under pressure over CoreWeave's CRWV.O debt burden and the cost of financing AI investment, then rallying on Wednesday after upbeat results from SpaceX SPCX.O and Super Micro SMCI.O.

The gains reversed on Thursday and the tech-heavy Nasdaq .IXIC fell nearly 3%. The slide accelerated following Meta's META.O nearly 8% decline after the Facebook parent reported its first cash outflow in more than a decade amid concerns over its AI-related expenditures.

In premarket trading on Friday, CoreWeave rose 2%, while 'Magnificent 7' stocks were mixed, with TSLA.O up 0.7% and Microsoft MSFT.O down 0.6%.

At 06:09 a.m. ET, Dow E-minis were down 308 points, or 0.58%, and S&P 500 E-minis were down 15.5 points, or 0.2%. Nasdaq 100 E-minis were down 0.75 points, or flat.

Brent crude held near a more than five-month high amid Middle East supply concerns, adding to inflation worries ahead of the Federal Reserve's policy meeting next week. O/R

Nasdaq was on track for a weekly loss, while the benchmark S&P 500 and the blue-chip Dow remained higher for the week, supported by gains in defensive sectors as investors sought refuge from the volatility in technology stocks.

Market focus remains on the earnings season. American Express AXP.N and SLB SLB.N, among others, are set to report later in the day.

S&P 500's third-quarter profit growth is now forecast at 32.3%, up from 30.7% previously, according to LSEG data.

In other premarket moves, gold miner Newmont NEM.N fell 1.5% after reporting quarterly results and warning that unit costs are expected to trend higher in 2027.

Bloom Energy BE.N rose 1.7% after the energy firm raised its fiscal 2026 forecast.

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