U.S. stock futures displayed mixed movement early Friday following a significant sell-off in artificial intelligence stocks that pushed the Nasdaq Composite into correction territory. Market participants are closely watching for the upcoming jobs report, which is expected to shed light on the health of the labor market and influence Federal Reserve policy decisions.
Futures linked to the Dow Jones Industrial Average fell 0.77%, with S&P 500 futures up 0.30%. Nasdaq-100 futures managed to gain 1.3%, rebounding after Thursday’s heavy losses. The previous session saw the Nasdaq Composite plummet 5.5%, while the S&P 500 dropped 4.4% and the Dow slipped 3.4%.
The sharp downturn was led by chipmakers and tech giants. The Philadelphia Semiconductor Index fell 12.25% on Thursday, with Micron Technology and Advanced Micro Devices plunging 17% each, while Nvidia dropped nearly 10%. Big tech players such as Apple, Microsoft, Meta, Amazon, and Alphabet declined—by as much as 4%.
Political developments also played a role, as Democratic gains in the recent midterm elections and calls for regulatory review of data center construction heightened concerns over a possible slowdown in the AI build-out. Texas’s newly elected Democratic governor, Gina Hinojosa, echoed the sentiment by urging a halt to new data center projects pending citizen protections.
Looking ahead, Friday’s release of nonfarm payrolls data will be crucial. The Dow Jones consensus expects 59,000 jobs to have been added in October, with the unemployment rate holding at 4.2%. Labor market resilience could impact the Fed’s rate outlook, especially following its 25-basis-point hike in September and ongoing concerns about persistent inflation.
