U.S. stock futures continued to edge lower early Friday, suggesting a bearish sentiment in the market following a sharp sell-off led by technology shares. Investors remained wary over potentially overstretched valuations in the AI sector and scrutinized fresh signals from the labor market.
As of 5:17 PM (GMT+7), the Dow Jones Industrial Average futures fell by 0.03%, or 12.80 points, to 46,900.90 points, while S&P 500 futures shrinked by 0.05%, or 3.60 points, to 6,716.80 points. Nasdaq 100 futures decreased by 0.11%, or 28.00 points, to 25,102.00 points after the tech benchmark endured another bruising session Thursday, with losses concentrated among megacap technology and AI stocks.
Persisting fears over a potential bubble in AI and stretched Big Tech valuations have set the stage for weekly losses of 2.8% for the Nasdaq Composite and 1.8% for the S&P 500. The Dow, typically less exposed to tech, is poised for a 1.4% decline.
Amid concern in the tech sector, Tesla shareholders approved a record $1 trillion pay package for CEO Elon Musk. The package is tied to Musk achieving bold market capitalization goals and major advances such as the firm’s robotaxi and Optimus humanoid robot initiatives. Shares of Tesla advanced 1.22% to $451.37 per share in premarket trade following the approval.
Labor market readings remained front and center. The Bureau of Labor Statistics was set to issue its October nonfarm-payrolls report Friday, but the release was delayed for a second month due to the ongoing government shutdown.
Looking ahead, market participants will be watching for key catalysts that could calm nerves. The potential conclusion of the governmental shutdown, a widely anticipated Federal Reserve rate cut in December, and Nvidia’s next earnings report all hold sway over investor sentiment. Meanwhile, the Supreme Court’s review of tariff policies that President Donald Trump enacted back in April is further adding the uncertainty into the market outlook.
