Apple Earnings Take Center Stage After the Close 02/11/2026
Market Wrap
U.S. stocks ended Friday sharply lower, capping a losing week as renewed concerns over artificial intelligence spending triggered a broad technology selloff ahead of the midterm elections and key economic data.
The Nasdaq Composite plunged 2.86%, marking its worst session since June and leaving the index roughly 8% below its recent peak. The S&P 500 dropped 1.82% while the Dow Jones Industrial Average fell 1.09%.
All three major benchmarks posted weekly losses, with the Nasdaq declining 2% and both the S&P 500 and Dow slipping less than 1%. Investors continued rotating away from AI-related stocks as doubts intensified over the sustainability of massive infrastructure investments.
The week initially began on a positive note following Anthropic's public IPO filing, which briefly revived enthusiasm for the AI sector. However, sentiment deteriorated after Alphabet (GOOGL) and Microsoft (MSFT) issued capital expenditure forecasts below expectations, while Amazon (AMZN) maintained its full-year spending outlook.
Selling accelerated into Friday's close as investors reduced exposure ahead of month-end and Tuesday's U.S. midterm elections. Democrats are expected to gain control of the House of Representatives, while the Senate outcome remains uncertain, adding another layer of political risk.
Geopolitical developments also remain in focus. U.S. Secretary of State Marco Rubio indicated that President Trump favors a diplomatic resolution to the Iran conflict, even as both sides prepare for potential military action. Oil prices declined Monday amid renewed reports of diplomatic efforts, easing some concerns over supply disruptions.
Attention now shifts to a crucial week for economic data and corporate earnings. October's nonfarm payrolls report, due Friday, is expected to show an increase of 55,000 jobs, according to economists surveyed by Dow Jones.
Apple (AAPL) reports earnings after Monday's closing bell, followed by McDonald's (MCD) and Qualcomm (QCOM) later in the week. With election uncertainty, AI valuations and labor-market data converging, volatility is likely to remain elevated across Wall Street.
Wall Street's Earnings Boom Faces a Critical Test in 2027
Corporate earnings have fueled Wall Street's rally throughout 2026, but growing concerns over slowing profit growth, elevated borrowing costs and AI spending are raising questions about the market's outlook for 2027.
S&P 500 earnings are on track to grow more than 30% this year, according to Capital Economics. Growth is expected to moderate to 16.3% in 2027, still roughly twice the historical average, although strategists warn even that forecast may prove overly optimistic.
Investor skepticism is already reflected in falling valuations. The S&P 500's forward price-to-earnings ratio has declined to around 19, approximately 20% below its peak. Technology valuations have compressed even further, with Nvidia (NVDA) trading at roughly half its peak 2025 multiple.
Credit markets are adding to concerns. Heavy borrowing by companies including Amazon (AMZN) and CoreWeave (CRWV) has pushed investors to demand higher premiums for corporate debt, potentially increasing financing costs and threatening future AI infrastructure investment.
Meanwhile, earnings growth is becoming increasingly concentrated. Just five companies — Nvidia (NVDA), Micron (MU), Broadcom (AVGO), Sandisk (SNDK) and Merck (MRK) — are expected to generate 68% of the S&P 500's total profit growth next year, according to Dow Jones Market Data.
The Magnificent Seven are also showing signs of slowing momentum, with the group on track to deliver weaker quarterly earnings growth than the remaining S&P 500 companies for the first time since the bull market began in 2022.
Capital Economics warns that a reversal in earnings momentum could expose the market's dependence on a handful of AI-driven companies, particularly as global demand and profitability face increasing uncertainty.
With the Nasdaq approaching correction territory and investors questioning ambitious profit forecasts, the sustainability of corporate earnings growth is becoming a central risk for Wall Street heading into 2027.
Stocks on the Move
- Intel (INTC): Shares plunged 23% after the chipmaker issued disappointing fourth-quarter guidance. Intel projected earnings of $0.25 per share on revenue of $15 billion–$16 billion, falling short of Wall Street estimates of $0.43 per share and $17.1 billion in revenue.
- Rivian Automotive (RIVN): Shares surged more than 8% after the electric vehicle maker reported a narrower-than-expected third-quarter loss of $0.48 per share on revenue of $2.16 billion, beating estimates of a $0.62 loss and $1.99 billion in revenue. The company also raised its delivery outlook.
- Amazon (AMZN): Shares dropped nearly 6% in premarket trading after the e-commerce giant reported weaker-than-expected third-quarter results and negative free cash flow of $42.4 billion, intensifying concerns over its aggressive spending.
- Reddit (RDDT): Shares tumbled 21% after the social media platform issued disappointing fourth-quarter revenue guidance and announced plans to require users to create official accounts to access its services.
- Crypto-Related Stocks (COIN, HOOD): Coinbase (COIN) and Robinhood (HOOD) fell more than 4% alongside Bitcoin (BTC) following a major security breach involving Binance. The exchange reported approximately $6.3 billion in affected assets, with roughly $3 billion in cryptocurrency reportedly frozen.
- Chevron (CVX): Shares gained 1.4% after the energy giant reported a nearly 200% surge in third-quarter net income to $9.9 billion, alongside revenue that exceeded Wall Street expectations.
Watchlist: MSTR, COIN, XOM, CVX, HOOD, AMZN, GOOGL, MSFT, META, TSLA, RIVN, SOFI, RKLB, SPCX, SKHY, MU, AMD, EL, MAR
Key Economic Events Today
Economic Data (ET)
- 09:45 AM — USD Final Manufacturing PMI
- 10:00 AM — USD ISM Manufacturing PMI, Prices, Construction Spending
Earnings
Before Market Open: Marriott International (MAR), Entergy Corp. (ETR), IDEXX Laboratories (IDEX), Estee Lauder (EL), Fox Corp. (FOX)
After Market Close: Apple Inc. (AAPL), Palantir Technologies (PLTR), Vertex Pharma (VRTX), Diamondback Energy (FANG), ON Semiconductor (ON)
