Stock Market Update

[BRIEFING.COM] The major averages have stabilized in a narrow range near their session lows, with technology stocks continuing to face substantial selling pressure following the latest round of earnings reports.

Meta Platforms (META 652.00, -45.52, -6.53%) is among the biggest drags on the market despite reporting stronger-than-expected revenue and underlying earnings, supported by continued growth in its advertising business. Investors have instead focused on the mounting costs of its AI investments, with underlying operating margins contracting from a year ago and quarterly capital expenditures exceeding operating cash flow, resulting in negative free cash flow. The company's substantial spending commitments have also raised questions about future financing needs and the timeline for generating sufficient returns on its AI infrastructure investments.

Tesla (TSLA 386.97, +0.50, +0.13%), meanwhile, has recovered from an early decline to trade near its flat line following its own earnings report. The company exceeded adjusted EPS expectations and reported improving automotive margins, while lowering its FY26 capital expenditure outlook to approximately $20 billion from more than $25 billion. However, declining operating income and continued spending requirements for its Robotaxi and robotics initiatives remain important considerations as investors assess the company's longer-term profitability.