Tech Stocks Stumble as Nasdaq 100 Futures Hold Steady Amid Tesla Earnings Woes

Tech Stocks Show Shaky Signs as Nasdaq 100 Futures Remain Flat The Nasdaq 100 futures were flat this morning, following a 1% decline in the index yesterday, which was largely attributed to Tesla's disappointing Q3 earnings call. Despite reporting record revenue, Elon Musk's company revealed a decline in profitability, sending the stock down 3%. This was the latest in a series of earnings calls from tech companies that have failed to impress traders. According to data, Tesla's Q3 revenue reached $43.8 billion, a 20% increase from the same period last year. However, the company's net income declined by 22% to $3.3 billion. The disappointing earnings call was a major contributor to the decline in the Nasdaq 100 index, which has been under pressure in recent days. The market impact of Tesla's earnings call was felt across the board, with other tech stocks also experiencing significant declines. Netflix stock fell 6% after its Q3 call a couple of days ago, while SAP stock dropped 1.6% after its results missed expectations despite a solid AI revenue pipeline. The tech sector's woes were further exacerbated by President Trump's latest threat to restrict U.S. tech exports to China. The measures are in retaliation to China's latest round of rare earth export restrictions. U.S. Treasury Secretary Scott Bessent stated that "everything is on the table" in relation to China, adding that any export controls would likely be coordinated with G-7 allies. Retail investors are pulling back, according to Arun Jain and his team at JPMorgan, who noted that the market is showing early signs of vulnerability. This sentiment was echoed by Peter Schaffrik and his colleagues at RBS, who told clients that the tech sector's decline is a cause for concern. The tech sector has been under pressure in recent months, with many companies struggling to meet expectations. The sector's decline has been attributed to a range of factors, including increased competition, regulatory pressures, and a slowdown in growth. Looking ahead, the tech sector's future outlook remains uncertain. While some companies are expected to continue to perform well, others may struggle to meet expectations. The impact of President Trump's trade policies and the ongoing trade tensions between the U.S. and China will also continue to be a major factor in the sector's performance. In conclusion, the tech sector's decline is a cause for concern, and investors would be wise to exercise caution in the coming weeks and months. While some companies may continue to perform well, others may struggle to meet expectations, and the ongoing trade tensions between the U.S. and China will continue to be a major factor in the sector's performance.