US pre-open: Wall Street futures dip as AI valuation concerns linger

5th Nov 2025 10:25

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday as market participants continued to reassess valuations across the AI-linked megacap space.

As of 1225 GMT, Dow Jones futures were down 0.06%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.24% and 0.38% lower, respectively.

The Dow closed 251.44 points lower on Tuesday as artificial intelligence-related names came under pressure after quarterly numbers from software outfit Palantir as concerns mounted over its elevated valuation.

Futures were in the red prior to the open on Wednesday as longer-term sentiment around the sector seemed to remain constructive, with investors citing continued strength in AI infrastructure spending as a key support for future growth.

On the macro front, US mortgage applications fell 1.9% in the week ended 24 October, according to the Mortgage Bankers Association, trimming the prior weel's 7.1% surge. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, dropped 2.8% week-on-week, while applications to purchase a home fell by 0.7%.

Still to come, October ADP employment change figures will be released at 1315 GMT, while last month's S&P Global composite and services PMIs were slated for release at 1445 GMT, and the Institute for Supply Management's services PMI will follow at 1500 GMT.

In the corporate space, fast food giant McDonald's Q3 earnings rose from $2.26bn to $2.28bn but fell short of estimates as it continued to operate in a 'challenging environment'

Still to come, Qualcomm, Robinhood and DoorDash will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com