Apple Earnings and Middle East Tensions Weigh on U.S. Stock Futures

Wall Street faces a softer open as disappointing guidance from Apple drags down technology shares, compounding a broader market retreat driven by escalating Middle East conflict and the U.S. midterm elections.

Apple Slump Deepens Tech Sector Retrenchment

Futures tied to the Nasdaq-100, the S&P 500 Index, and the Dow Jones Industrial Average dropped 0.20%, 0.25%, and 0.47% respectively, according to TipRanks data. The downward pressure followed a punishing tech selloff that pushed the Nasdaq closer to correction territory.

Apple shares slid 2.7% in after-hours trading after the world’s most valuable company reported its quarterly earnings. While the results beat expectations, the company issued a weaker margin outlook for the holiday quarter, and iPad sales missed Wall Street estimates. Growth across the tech sector has faced headwinds from a global memory-chip crunch driven by the race to build up AI infrastructure.

Geopolitical Tensions Lift Crude Prices

Meanwhile, oil prices ticked up following reports that the U.S. carried out strikes against Iran’s Qeshm Island, raising fears of prolonged disruptions to Middle East supplies.

Brent crude futures rose 0.95% to $105.76 per barrel, while WTI crude futures climbed 0.95% to trade at $97.38 per barrel. The price gains came despite ongoing diplomatic talks between the U.S. and Iran.

Midterm Elections and Economic Data on Deck

Voters headed to the polls for the U.S. midterm elections, which will determine control of Congress for the remainder of President Trump’s term. Prediction markets assigned Democrats approximately a 75% chance of taking control of the Senate, an outcome that could shift government policies and regulations across technology, healthcare, and defense sectors.

Investors are also monitoring September factory orders and the JOLTs report, alongside a packed corporate earnings calendar featuring Advanced Micro Devices, Super Micro Computer, Pfizer, Block, and Amgen.

More on this story: US Stocks Fall as Rising Oil Prices and Treasury Yields Weigh on Markets · S&P 500 and Nasdaq Hit Record Highs as Tech Stocks Surge

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