Pre-market futures declined on Friday, October 23, 2026, as investors reacted to Meta Platforms' recent comments questioning the viability of AI infrastructure buildout. The Dow Jones Industrial Average led the losses, falling 377 points, while the tech-heavy Nasdaq Composite dropped 34 points. The S&P 500 lost 22 points and the small-cap Russell 2000 index slipped 15 points. This follows a session where the Nasdaq had fallen nearly 700 points, or 2.6%, despite the Dow closing in positive territory.
The uncertainty surrounding AI capital expenditure is influencing industrial stocks. Caterpillar Inc., a component of the Dow 30, fell 4.9% in pre-market trading ahead of its third-quarter earnings report scheduled for next Thursday. Conversely, bond yields have eased from multi-decade highs recorded two weeks ago. The 10-year yield dropped below 5% for the first time in a month.
Energy markets show continued tension as the United States and Israel reportedly draw up plans to attack Iranian facilities linked to nuclear weaponry development. Investors anticipate potential retaliation that could disrupt global oil supply, following a pattern where Iranian responses have previously shuttered supply during conflicts lasting longer than initial estimates. Ongoing bombings of a Saudi airport by Iran-backed Houthi rebels also contribute to supply concerns. The West Texas Intermediate spot oil price rose above $100 per barrel, while Brent crude returned to early May highs at $115 per barrel.
Two companies reported third-quarter earnings that exceeded expectations before the opening bell. American Express reported earnings of $4.68 per share, surpassing the Zacks consensus estimate of $4.47 by 4.7% and exceeding the year-ago figure of $4.14 per share. However, revenues of $20.06 billion missed expectations by 0.74%. American Express shares are down 12% year to date and fell another 1.9% in pre-market trading.
SLB Corp., formerly Schlumberger, reported earnings of $0.64 per share, beating estimates by two cents. Revenues of $9.45 billion exceeded the Zacks consensus by 1.72%. SLB shares rose 2% in pre-market trading, adding to a 29% gain year to date.
Economic indicators released after the opening bell are expected to show continued softness in consumer sentiment. Flash U.S. Purchasing Managers' Index data for October is projected to decline month over month to 55.3 for manufacturing and 58 for services, both remaining above the 50-level threshold for growth. The final University of Michigan Consumer Survey for October is expected to fall to 46.3 from the previous reading of 48.1.