Dow Futures inched up as investors evaluated the prospects for the artificial intelligence boom, following a series of media reports concerning revenues at ChatGPT-maker OpenAI. Delta Air Lines is set to announce its most recent quarterly earnings, as the airline contends with a rise in fuel expenses. A recent survey of U.S. consumer sentiment may offer valuable insights into the attitudes of U.S. households ahead of the holiday shopping season.
Dow futures experienced an uptick on Friday. By 03:04, the Dow futures contract had risen by 33 points, or 0.1%, S&P 500 futures had advanced 25 points, or 0.3%, and Nasdaq 100 futures had jumped by 243 points, or 0.8%. The primary indices on Wall Street exhibited a mixed performance on Thursday. The blue-chip Dow Jones Industrial Average recorded a modest increase of 0.1%, whereas the benchmark S&P 500 and the tech-heavy Nasdaq Composite experienced declines of 0.47% and 1.25%, respectively. Growing concerns regarding a potential intensification of violence in the Middle East led to the largest daily increase in Brent crude futures in a fortnight, which in turn heightened anxieties about a worsening selloff in global bond markets that has unsettled sentiment over the course of this week. However, oil prices subsequently experienced a partial pullback following President Donald Trump’s assertion that the U.S. was involved in “positive” discussions with Iran and would refrain from military action against the country prior to the midterm elections. Earlier reports indicated that the Pentagon was evaluating strike options prior to the November vote. Meanwhile, a report indicated that OpenAI’s annualised revenue was approximately $50 billion at the end of September, falling short of the previously signalled $70 billion, which negatively impacted tech stocks, in particular.
However, Nasdaq 100 futures were buoyed this morning by a report indicating that OpenAI anticipates reaching or exceeding $70 billion in annualised revenue by the end of the year. The growth is anticipated to be primarily propelled by its enterprise business, sources indicated. Annualised revenues represent a vital indicator for AI startups such as OpenAI and its competitor Anthropic. The measures serve to assess the overall demand for AI and the necessity for expanded computing infrastructure. However, the trajectory toward profitability for OpenAI appears ambiguous, as recent reports suggest that the company is likely to experience a full-year loss. OpenAI has also projected it will incur a loss of $280 billion by 2030. The reports emerge as traders closely examine the viability of AI financing in light of recent developments indicating a surge in AI-related debt agreements, which are being leveraged to support a substantial expenditure on the infrastructure essential for the burgeoning technology.
On a relatively sparse earnings calendar, markets will be monitoring the returns from carrier Delta Air Lines prior to the opening bell. For the third quarter, Delta is projected to report adjusted revenue of $17.66 billion and adjusted per-share income of $1.82, based on estimates. In July, Delta reaffirmed its full-year profit outlook and provided third-quarter guidance that exceeded expectations, emphasising its intention to sustain fare increases linked to a recent rise in fuel costs. However, the group forecasted that its fuel expenses will be approximately $4 billion greater this year compared to the previous year, and highlighted that fluctuations in energy prices pose a significant risk to its financial outlook.
Elsewhere, a tracker of consumer expectations from the University of Michigan for October may provide insights into the condition of American shoppers as the final quarter of 2026 commences. The Michigan consumer sentiment index is projected to decline to a reading of 47.5, decreasing from a four-month low of 48.1 recorded in September. Last month, survey respondents expressed concerns regarding the ongoing increase in prices, although conditions for purchasing durable goods showed a slight improvement due to “a perception that completing such purchases now would help consumers avoid higher prices in the future,” as noted by Joanne Hsu, Surveys of Consumers Director at the University of Michigan. In September, year-ahead inflation expectations surged to their highest level since June. Overall, last month’s study revealed “broad agreement across the political spectrum” that the outlook for the economy has weakened since the beginning of the year.
U.S. mobile tower stocks experienced an increase in after-hours trading following SpaceX’s agreement to acquire a nationwide block of low-band spectrum. Bernstein noted that this development maintains the potential for the satellite company to establish a ground network. American Tower, Crown Castle, and SBA Communications – three of the country’s largest phone tower operators – experienced an increase of between 3% and 4.5% in after-hours trading. SpaceX is set to disburse approximately $8 billion in cash to acquire the spectrum from private equity firm Grain Management, as reported on Thursday. The acquisition is designed to enhance SpaceX’s Starlink satellite-to-cellular service, as the new spectrum facilitates signal penetration through obstacles-addressing a significant challenge for the service. “This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America,” SpaceX CEO Elon Musk said.
