S&P 500 Futures Today Rebound as Apple Earnings Put AI Optimism to the Test

Why Are S&P 500 Futures Turning Higher Today?

S&P 500 futures are showing signs of recovery on November 2 after October's technology-led selloff, but investor confidence remains fragile. 

Expectations surrounding Apple's earnings are providing some support, while concerns about artificial intelligence (AI) investment costs and slowing corporate earnings growth continue to weigh on the broader market.

S&P 500 Futures Rise as Investors Position Ahead of Apple Earnings

SP500 December futures traded at 7,643.75, up 29.75 points (0.39%), according to an Investing.com delayed quote timestamped 20:36:52 on November 2. The trading range was 7,625.25–7,647.75.

Earlier, Reuters reported that S&P 500 futures gained approximately 0.5%, while Nasdaq futures rose 0.9% as investors prepared for Apple's earnings report.

The recovery follows a weak October. The S&P 500 closed at 7,580.07 on October 30, falling 140.32 points (1.82%). The Nasdaq Composite also dropped 2.86%.

Apple is in focus ahead of its quarterly results. Analysts expect earnings per share (EPS) of around $2 and revenue of approximately $113 billion. Investors are also watching iPhone 18 demand and the company's AI strategy.

Goldman Sachs Warns of Slowing Earnings Growth and Rising AI Costs

Despite the futures recovery, rising AI investment costs remain a concern. Goldman Sachs estimates that major cloud companies, known as hyperscalers, could spend $800 billion in 2026 and $1.2 trillion in 2027.

However, the bank expects S&P 500 earnings growth to slow from nearly 30% in 2026 to 18% in 2027.

Goldman Sachs chief US equity strategist Ben Snider highlighted the changing outlook in a research note reported by Reuters on November 2. Snider said,

"Earnings growth is strong, but it is no longer accelerating." 

Rising AI costs without similar revenue growth could put pressure on technology valuations and investor confidence.

Intel's Sharp Decline Keeps Semiconductor Stocks Under Pressure

Semiconductor weakness is another concern for the S&P 500. 

Intel shares plunged approximately 28.6% on October 30 following its earnings update and weaker outlook. The decline raised concerns about chip demand, production costs and profitability.

Other semiconductor stocks also suffered losses. AMD fell nearly 11%, while Broadcom declined around 6.5%. The selloff has raised questions about whether growing AI demand can justify the industry's heavy infrastructure spending.

The Nasdaq Composite lost almost 7% in October, marking its worst monthly performance since April 2025. Continued weakness in major technology stocks could limit the S&P 500's recovery.

Fed Rate Hike Expectations and Technical Pressure

Federal Reserve policy remains another market concern.

Markets are pricing in the possibility of a December rate hike amid persistent inflation concerns. Higher interest rates can pressure growth stocks by increasing borrowing costs and reducing the value of expected future earnings.

Technical indicators are also pointing to downside risks. In his November 1 weekly outlook, StoneX analyst Fawad Razaqzada said the S&P 500 had broken an important support zone.

According to Forex.com, Fawad Razaqzada, market analyst at StoneX, wrote:

"With key support now broken, the near-term S&P 500 outlook is tilted to the downside."

The 7,620–7,632 area could now act as resistance, while 7,500 is a potential downside support level.

US Midterm Elections and Oil Add to Market Uncertainty

Investors are also watching the US midterm elections on November 3. All 435 House seats and 35 Senate seats are being contested.

Midterm Election results could also influence fiscal policy and technology regulations. Besides, oil prices are adding to inflation concerns. On November 2, WTI crude oil traded around $100.69 per barrel, while Brent stood near $109.75.

Although diplomatic efforts involving Iran and Qatar have raised hopes of easing regional tensions, uncertainty around the Strait of Hormuz remains a risk for global energy supplies.

Higher oil prices could keep inflation elevated and complicate the Fed's policy decisions.

Technical Analysis/ Key levels to Watch

If sellers defend the 20 EMA and the FVG above it, futures could slide about 0.5% back toward the 7,572.25 to 7,595 order block. A 45-minute close above 7,717 would weaken this bearish setup and open the way toward the 7,768.25 order block. A break below 7,562.50 could expose 7,500.

Resistance: 7,659 to 7,700 (20 and 50 EMA), 7,673.25 to 7,717 (FVG), 7,768.25 to 7,815.25 (order block)

Support: 7,572.25 to 7,595 (order block), 7,562.50 (wick block), 7,500

The 45-minute chart below shows a clear shift from bullish to bearish structure.

After sweeping liquidity at 7,815.25 on October 28, S&P 500 futures turned bearish with a CHoCH below 7,760.75 and a BoS below 7,736.25.

 Friday’s gap left an FVG at 7,673.25 to 7,717. Price closed at 7,616.50, below the 20 and 50 EMAs, with a possible 0.51% slide toward the 7,572.25 to 7,595 order block.

What Should Traders Do Now?

Monitor Capital Expenditure: Keep a close eye on Meta's upcoming capital expenditure guidance, particularly for 2027, as it will indicate whether S&P's more aggressive forecasts are materializing.

Watch for Monetization Signals: Look for concrete announcements or early indicators of how Meta plans to generate significant revenue from its AI and metaverse investments to offset rising costs.

Observe Stock Sale Impact: Assess the market's reaction to the planned stock sale and any further details on its size and timing, as this could influence short-term liquidity and investor sentiment.

Warning! High Impact News Today: The US ISM Manufacturing PMI is scheduled for release today, November 2, 2026, at 10:00 AM ET. The forecast for the October data is 54.7, following September's reading of 54.5. This economic data could influence broader market sentiment, including the tech sector.