Tech Futures Rebound on Black Monday Anniversary as Mega-Cap Earnings Week Begins

US equity futures staged a partial recovery on Monday, October 19, with Nasdaq 100 futures gaining 1.19% or roughly 336 points and S&P 500 futures advancing 0.55%, even as the Dow edged up just 0.03%. The bounce came after a punishing sell-off in technology shares, with investors encouraged by easing Treasury yields, though crude oil near $110 per barrel kept inflation concerns alive.

The session opened with mixed signals across large-cap tech. Apple gained 0.43% while Microsoft slipped 1.93%, Nvidia fell 1.43%, Alphabet dropped 2.47% and Amazon pulled back 1.87%. Nvidia's price-to-earnings ratio fell to a multi-year low as sector pressure persisted. Intel bucked the trend after JPMorgan upgraded the stock to Neutral from Underweight, citing solid execution and growing AI server demand.

The week's central focus is a heavy earnings slate: roughly 70 S&P 500 companies are scheduled to report, with Meta and Tesla on Wednesday drawing the most attention. Netflix, General Motors, GE Aerospace, United Airlines and Capital One report Tuesday, followed Thursday and Friday by Procter and Gamble, Comcast, Blackstone, Lockheed Martin and American Express. Bank of America noted that early in the season 80% of S&P 500 reporters beat earnings per share estimates, below the 88% beat rate of the prior quarter, with muted stock reactions and small rewards for beats. The firm projects 32% year-over-year earnings growth for the index overall.

Investors are specifically watching whether Meta and Tesla can justify AI-related capital spending amid rising interest rates and debt concerns, following a sharp AI-driven sell-off in the preceding week. The Travelers Companies provided one early bright spot, reporting third-quarter earnings of $9.18 per share and topping forecasts. Cleveland-Cliffs also beat estimates, posting third-quarter GAAP net income of $165 million, adjusted EPS of $0.28 and adjusted EBITDA of $612 million.

Indian markets closed sharply lower, with the BSE Sensex falling 876 points or 1.17% to 73,852.90 and the Nifty 50 dropping 257 points or 1.11% to 22,888.95. Private banking and IT stocks led the decline, with Axis Bank off 3.85% and Infosys down 2.72%, while PSU banks outperformed with the Nifty PSU Bank index gaining 2.6%. Market breadth was firmly negative, with 2,925 shares declining against 1,163 advancing. The Indian rupee weakened 3 paise to 94.92 per US dollar.