*

Futures down: Dow 0.35%, S&P 500 0.32%, Nasdaq 0.49%

*

Alphabet jumps on quarterly earnings beat

*

Meta forecasts bigger capital expenditure, shares drop

*

Microsoft ( MSFT ) reveals massive AI spending, shares down

(Updates with analyst comments, prices before the opening bell)

By Pranav Kashyap

Oct 30 (Reuters) - U.S. stocks were on track for a

softer open on Thursday after mixed earnings reports from large

technology firms and comments from Federal Reserve Chair Jerome

Powell that sowed doubts about further rate cuts this year.

Meta Platforms ( META ) fell 9.8% premarket after a near $16

billion one-time charge gutted its third-quarter profit, while

its management signaled 2026 capex would be "notably larger."

Microsoft ( MSFT ) slipped 2.4% as it cautioned capital

expenditures will rise this year, reversing earlier guidance for

moderation and stoking worries about the mounting cost of AI.

In contrast, Alphabet jumped 7.8% after robust AI

demand powered better-than-expected results.

U.S. stocks soared to record highs on Wednesday after AI

bellwether Nvidia ( NVDA ) became the first company to surpass

$5 trillion in market value.

Meanwhile, the Fed delivered a widely expected quarter-point

rate cut on Wednesday, but Powell surprised markets by casting

doubt on the prospects of a rate cut in December, pushing the

main indexes to wipe out intraday gains and close largely flat.

Traders quickly pared back the odds of another similar-sized

move in December to about 70%, down from roughly 90% earlier in

the week.

"Markets' immediate reaction has been to see the FOMC

meeting as hawkish - with simultaneous selling of bonds, gold,

and equities," said Matt King, founder of Satori Insights.

"This reaction is unsurprising."

Markets will turn to upcoming results from other

"Magnificent Seven" members Apple ( AAPL ) and Amazon ( AMZN ),

due after the closing bell on Thursday.

Eli Lilly ( LLY ) rose 3.7% after raising its full-year

profit and revenue forecasts, while Merck & Co ( MRK ) fell 1.4%

despite posting higher third-quarter revenue.

Of the 222 companies in the S&P 500 that have reported so

far, 84.2% have posted earnings above estimates, according to

LSEG data as of Wednesday. That is above the 77% average from

the past four quarters.

Chipotle Mexican Grill ( CMG ) tumbled over 18% after the

burrito chain axed its annual sales forecast, with tariffs and

inflation squeezing margins.

At 08:41 a.m., Dow E-minis were down 168 points, or

0.35%, S&P 500 E-minis were down 22.25 points, or

0.32%and Nasdaq 100 E-minis were down 128.75 points, or

0.49%.

U.S. President Donald Trump claimed a breakthrough with

Chinese counterpart Xi Jinping on rare earths and tariffs. Trump

agreed to roll back some tariffs on Chinese imports in exchange

for Beijing resuming soybean purchases, keeping rare earth

exports flowing, and cracking down on fentanyl trafficking.

However, investors were cautious about cheering the deal as

previous trade negotiations between the two largest economies

have seen promising starts followed by setbacks.

Shares of rare earth miners rose, with MP Materials ( MP )

up 4.6%, USA Rare Earth ( USAR ) advancing 6.1% and Critical

Metals rising 11%.

(Reporting by Pranav Kashyap and Nikhil Sharma in Bengaluru;

Editing by Krishna Chandra Eluri and Shinjini Ganguli)