US stock futures are pointing to a mixed open on Friday, as investors attempt to buy the dip in technology shares following Thursday's sharp selloff. While Nasdaq futures are recovering, Dow futures remain under pressure, reflecting a divergence in market sentiment.
Tech and AI stocks attempt recovery
Technology and AI-related shares are bouncing in premarket trading after Thursday’s steep decline. Nasdaq 100 futures had gained 358 points, or 1.34%, while S&P 500 futures also moved higher. However, Dow Jones Industrial Average futures slipped over 1%, losing 521 points, as the blue-chip index continues to face headwinds.
The Nasdaq Composite plunged 5.52% in the previous session, its worst one-day drop in 19 months, pushing the index into correction territory. The S&P 500 fell 4.36% to 7,353.73, while the Dow dropped 3.44% to 51,523.06. The early rebound in tech suggests some buyers are stepping in, though volatility remains elevated.
Selloff extends to Asia
Asian equities fell sharply overnight as the AI selloff spread globally. South Korea’s KOSPI dropped more than 6%, extending losses after a 5% decline in the prior session, while Japan’s Nikkei also sank. Giants Samsung and SK Hynix led the declines. European markets were also lower, with Germany's DAX and Britain's FTSE 100 falling over 2%.
Investors remain cautious after Wall Street’s technology-led rout and concerns about slower AI infrastructure spending under a Democratic Congress.
Anthropic IPO faces investor scrutiny
Major investors are questioning whether Anthropic can complete its planned initial public offering at the previously discussed $1.5 trillion valuation. The AI company had been preparing for a listing as early as later this month. After Thursday’s broad technology selloff, some large funds now see a valuation closer to $1 trillion as more realistic.
Persuading institutional investors to take substantial exposure to the AI sector could prove difficult so soon after they have suffered losses in the recent selloff, even if markets recover in the coming days. Anthropic’s recent strong revenue growth remains a positive, but market conditions are clearly shifting.
Oil prices jump
Crude oil rose for a second straight session. Brent climbed above $99 a barrel and briefly topped $100 during Asian trading, while West Texas Intermediate also moved higher. Fresh reports of tanker attacks in the Gulf and Strait of Hormuz revived supply worries amid continued uncertainty over the situation in the Middle East.
However, prices had stabilised at the time of writing, with Brent around $98.5, gaining roughly 0.20% in the session. WTI crude was at $90.8 a barrel.
Jobs report in focus
The October nonfarm payrolls report is due at 8:30 AM ET. Economists expect roughly 60,000 to 65,000 new jobs, with the unemployment rate steady near 4.2%. The data will influence the odds of a Federal Reserve rate hike in December, which currently stands at 72%.
Several companies also report results, including Moderna, Humana and Charter Communications. The University of Michigan consumer sentiment survey follows later in the morning.
This article is for informational purposes only and does not constitute financial advice.
