Dow, S&P 500, Nasdaq futures falter in bid to recover from tech-led sell-off
US stock futures faltered in their rebound bid on Friday, set to resume a steep tech-led sell-off as investors weighed signals on the jobs market and the odds of overdone AI valuations.
Futures on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) slipped below the flat line, losing hold of earlier slight gains. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were also little changed following Thursday’s sharp losses for US gauges led by megacap tech and AI names.
Stocks are on track to close a tough week in the red, dragged down by persistent worries about an AI bubble as Big Tech valuations run high. The Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) are eyeing weekly declines of 2.8% and 1.8%, respectively. The Dow (^DJI), which includes fewer tech names, is set for a 1.4% drop.
In the latest sign of tech faith, Tesla (TSLA) approved a $1 trillion pay package for CEO Elon Musk, setting high targets for growth in the EV maker’s market value. Musk will also have to deliver on his promises for its robotaxi and Optimus humanoid robot — the hardware side of the AI boom. Tesla shares rose 1.6% in premarket trading.
The Bureau of Labor Statistics was scheduled to release its October nonfarm-payrolls report on Friday, but for a second straight month, publication has been delayed by the government shutdown. Economists had forecast a 60,000-job decline and an uptick in the unemployment rate to 4.5% per a Dow Jones economist survey cited by CNBC.
New data showed October job cuts hit their highest level for the month in more than 20 years, underscoring what’s shaping up to be the worst year for layoffs since 2009.
Market participants are now looking ahead to several potential catalysts. The end of the prolonged U.S. government shutdown, a possible December Fed rate cut, and Nvidia’s upcoming earnings report could help stabilize sentiment and revive risk appetite. Meanwhile, the Supreme Court’s review of former President Trump’s tariff policies adds another layer of uncertainty.
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