US equity-index futures fell as a technology rally faded, trimming gains sparked by strong earnings that had bolstered confidence in the artificial intelligence trade.
Matt Orton, chief market strategist at Raymond James Investment Management, said the market is all about earnings and noted a tension between the growth trajectory of AI stocks and the industry’s ability to finance them.
Tesla Inc.’s Wall Street expectations, complicating Elon Musk’s plan to transform the electric‑vehicle maker into an AI and robotics company. Capital expenditures totaled $4.73 billion in the third quarter, well below the $7.95 billion analysts had expected, according to estimates compiled by Bloomberg.
Meta Platforms Inc., by contrast, raised its capital‑spending outlook as it ramps up investment in AI, underscoring the vast sums technology <a If we don't build out these data centers, it is actually more inflationary because the cost of compute is so high right now," Fink said in an interview on Bloomberg Television Wednesday on the sidelines of the Berlin Global Dialogue event. "And the faster we can build out more data centers, the more compute we have, the faster we can bring down the cost."
