U.S. stock index futures pointed to a sharply lower open on Friday as weak results and forecasts from Intel and Amazon, along with disappointing outlooks from Reddit, Roblox and Twilio, triggered a broad technology selloff on the final trading day of October. As of about 6 a.m. ET, Nasdaq-100 futures were down 2.29%, S&P 500 futures had declined 1%, and Dow futures were marginally lower, according to TradingView.
Intel led the decliners, falling between 25% and 27% in early trading to the high-$60s after guiding fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17.1 billion expected. Amazon slid about 6% to 7% after missing third-quarter estimates and reporting $77.3 billion of quarterly capital spending against $58.7 billion expected. Reddit fell roughly 19% to 22%, Roblox 17% to 19% and Twilio about 17%, according to premarket data from Benzinga and Stock Market Watch.
Overseas trading offered little relief, with Tokyo leading losses. Japan's Nikkei 225 fell 1,369 points, or 2.12%, to 63,290, while Shanghai's index slipped 52 points to 3,599 and Hong Kong's Hang Seng rose 335 points to 23,294, according to Investrade. In Europe, Germany's DAX was down 148 points to 25,891, while the FTSE 100 edged up 20 points to 10,742.
Energy was the notable exception. Exxon Mobil and Chevron both beat third-quarter profit estimates on strong refining margins, and the broader energy sector gained about 1.5% in premarket trading, according to Stock Market Watch.
The selloff follows a session on Thursday in which the Nasdaq Composite fell 1.4% to 26,184.72 and the S&P 500 lost 0.3% to 7,720.39, ending a three-day winning run, even as nine of 11 S&P 500 sectors finished higher, according to Zacks. The VIX volatility index rose 1.7% to 17.20 on Thursday, a level that still signals moderate rather than extreme fear.
Individual earnings stories share a common thread of investor impatience with spending and guidance. Intel beat third-quarter estimates but warned the PC slowdown could last through the first half of 2027; Amazon reported 39% AWS growth but a $42.4 billion trailing free cash flow outflow; and Reddit grew third-quarter revenue 53% but guided fourth-quarter sales to $1.00 billion–$1.03 billion versus the $1.05 billion consensus.
Roblox shed about 17% to 19% after disappointing fourth-quarter guidance, while Twilio fell about 17% after guiding fourth-quarter adjusted earnings of $1.48 to $1.53 per share, with the low end below the $1.49 analysts expected, CNBC reported.
That rotation matters for positioning. Thursday's defensive leadership, with health care up 2.4% and real estate up 2.2%, suggests investors were already rotating away from AI-exposed names before the latest earnings. Friday's gap-downs in several high-multiple technology and internet stocks add to evidence that guidance, not headline beats, is driving the reaction function this earnings season.
Friday also marks the last session of October, so month-end rebalancing and portfolio window dressing could amplify moves in the stocks that have gapped most.
For a paper trading book, the practical implications are straightforward: expect elevated intraday volatility in AI-linked and ad-supported technology names, avoid chasing gap-downs without confirmation, and favor relative strength in energy and defensives while the guidance-driven selloff plays out. Traders will also watch follow-through in Asia and Europe, crude and diesel prices, and whether dip buyers defend Thursday's lows in the Nasdaq.