Advanced Micro Devices (Nasdaq: AMD) slid 8.1% before the open even after topping Q2 expectations, with revenue of $11.54 billion versus $11.3 billion expected and EPS of $1.66 versus $1.62 expected. The company also guided Q3 revenue to $12.7 billion to $13.3 billion, above the $12.51 billion estimate. The market reaction is a reminder of how unforgiving the AI tape has become when expectations run hot. Analysts mostly kept the long-term thesis intact, citing AI GPU acceleration, server demand, and another beat-and-raise quarter, but the stock reaction suggests investors wanted an even cleaner upside surprise.
The private payrolls read came in softer than expected, with ADP showing 44,000 jobs added versus estimates for 68,000 and a prior reading of 98,000. The slowdown gives traders another labor-market data point to weigh as they debate whether the economy is cooling fast enough to change the Fed’s tone.
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AI kept the market’s momentum alive, with S&P 500 futures up 0.4% and the index poised to clinch its second straight record close. Strong earnings have helped steady investor confidence that the AI spending cycle still has enough demand behind it. The market looked past uneven results in other corners of the tape and stayed focused on the infrastructure side of the AI trade.
Nvidia (Nasdaq: NVDA) moved higher after Elon Musk drew fresh attention to his compute ambitions, while SanDisk (Nasdaq: SNDK) and Western Digital (Nasdaq: WDC) remain on deck with earnings after the close. On the quarterly earnings front, 87% of S&P 500 companies have topped profit estimates so far.
The 10-year Treasury yield slipped to about 4.61% after ADP’s softer-than-expected private payrolls report, easing pressure on growth stocks and the AI trade. The 30-year yield also moved lower to roughly 5.16%, while the 2-year held near 4.20%, suggesting traders are still weighing a cooler labor market against the Fed’s next move.
Here’s a look at where things stand as of pre-morning trading:
Dow Futures: 54,484 Up 0.40%
Nasdaq 100 Futures: 29,930 Up 0.23%
S&P Futures: 7,801 Up 0.47%
SpaceX’s (Nasdaq: SPCX) AI ambitions have begun to show up in the capex line. The company said capital spending reached $18.4 billion in its latest quarter, with $15.8 billion tied to its AI buildout, roughly double the prior quarter’s level. Elon Musk also tied the spending directly to Nvidia (Nasdaq: NVDA), saying SpaceX has committed to using NVIDIA GPUs exclusively because they are “the best.” SpaceX is spending aggressively, and Nvidia remains the hardware winner inside the buildout.
Uber Technologies (Nasdaq: UBER) is trying to turn robotaxis into an app-layer advantage, with plans to bring autonomous rides to 15 U.S. markets by year-end 2026. The bet is that Uber does not need to build the cars to keep the customer relationship.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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