U.S. equity futures rose this morning, led by Meta Platforms Inc.'s announcement of a $95 billion equity raise. Nasdaq futures gained 0.3 percent, while S&P 500 futures increased 0.2 percent in pre-market trading. Meta shares fell one percent to $642.62.
Meta's $95 billion capital infusion—its largest to date—targets artificial intelligence infrastructure and metaverse development, directly addressing long-standing analyst concerns about the company's capital expenditure needs, particularly for Reality Labs, which has reported substantial losses.
Morgan Stanley reiterated an "Overweight" rating and raised its price target to $720, citing the strengthened balance sheet and accelerated AI roadmap as key catalysts. The firm views this raise as a decisive move to solidify Meta's competitive position in artificial intelligence.
The broader market showed weakness. The S&P 500 fell 0.5 percent to $7,624, and the Dow Jones dropped 1.2 percent to $52,215. Crude oil prices slid more than two percent, with West Texas Intermediate futures falling below $80 a barrel, reflecting renewed concerns over global demand.
Brazil's benchmark Ibovespa index crashed more than five percent after President Luiz Inácio Lula da Silva's administration announced new fiscal spending measures and state intervention in key industries. The policy shift created significant uncertainty for foreign investors holding Brazilian equities and bonds, triggering a flight to safety from emerging markets. JPMorgan analysts warned that the moves could lead to a downgrade of Brazil's sovereign credit rating, further dampening investor confidence.
The Consumer Price Index report is due next Tuesday and will provide insights into the Federal Reserve's monetary policy path. The Federal Reserve's next policy meeting is scheduled for November 6.
