December Nasdaq 100 E-Mini futures (NQZ26) are up +1.68% this morning as investors bought the dip in chipmakers and other AI-related stocks after the previous session’s brutal selloff.
Chip and AI infrastructure stocks climbed in pre-market trading, recovering some ground after yesterday’s rout. Sandisk (SNDK), Micron Technology (MU), and Advanced Micro Devices (AMD) each rose +7% or more.
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Elsewhere, WTI crude prices edged higher on Friday, extending gains from the previous session as traders weighed the prospects for an end to the Middle East conflict. Treasuries fell across the curve, with the benchmark 10-year yield rising two basis points to 4.86%.
Attention now turns to the release of the key U.S. jobs report, which will offer further clues on the Federal Reserve’s interest-rate path.
In yesterday’s trading session, Wall Street’s major indices closed sharply lower as investors retreated from technology stocks amid speculation that congressional Democrats would impose tighter regulations on the AI industry. Chip and AI infrastructure stocks crashed, with Sandisk (SNDK) tanking over -22% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) sinking more than -17%. Also, the Magnificent Seven stocks slid, with Nvidia (NVDA) slumping over -9% to lead losers in the Dow and Meta Platforms (META) falling nearly -4%. In addition, Expedia Group (EXPE) tumbled over -13% after the company gave a soft Q4 gross bookings forecast. On the bullish side, AppLovin (APP) popped more than +31% and was the top percentage gainer in the S&P 500 and Nasdaq 100 after the advertising tech platform posted upbeat Q3 results and issued above-consensus Q4 revenue guidance.
“The rotation out of chipmakers reflects growing concern about the pace and funding of AI spending due to the risk of more regulations after the blue wave, even as earnings remain resilient and valuations have reset sharply,” said Chris Murphy at Susquehanna International Group.
On the economic front, however, Thursday’s U.S. data offered some positive news, with fewer jobless claims, stronger-than-expected productivity growth, and an unexpected decline in unit labor costs. The number of Americans filing initial jobless claims unexpectedly fell by 6K last week to a 3-1/2-month low of 189K, compared with expectations of 197K. Separately, U.S. Q3 nonfarm productivity climbed +3.6% q/q, stronger than expectations of +2.8% q/q, while unit labor costs unexpectedly fell -0.7% q/q, compared with expectations of +0.3% q/q.
Cleveland Fed President Beth Hammack said on Thursday that interest rates must be restrictive to bring inflation back to the central bank’s target. “I expect that monetary policy will need to move to a restrictive stance to bring inflation back to 2% in a timely manner,” Hammack said, adding that she favors making “more frequent, smaller adjustments when possible.” Separately, Richmond Fed President Tom Barkin reaffirmed his preference for a “gradual” pace of interest-rate hikes, though he declined to specify how high rates would need to go.
U.S. rate futures are currently pricing in a 69.3% chance of a 25-basis-point rate hike and a 30.7% chance of no rate change at December’s monetary policy meeting.
Today, all eyes are on the U.S. nonfarm payrolls report, which is set to be released in a couple of hours. Economists estimate that October nonfarm payrolls will rise by 65K after a lower-than-expected 29K gain in September.
Investors will also focus on the U.S. unemployment rate. Economists anticipate that the jobless rate will remain steady at 4.2% in October.
U.S. average hourly earnings data will be released today. Economists expect average hourly earnings to rise +0.3% m/m and +2.9% y/y in October, compared with +0.1% m/m and +3.0% y/y in September.
The University of Michigan’s U.S. consumer sentiment index will be reported today. Economists forecast that the preliminary November figure will come in at 48.1, compared with 48.0 in October.
The Fed’s Consumer Credit report will be released today as well. Economists expect U.S. consumer credit to increase by $13.4 billion in September, compared with an $8.3 billion increase in August.
In addition, market participants will be watching for speeches from Fed Vice Chair for Supervision Michelle Bowman and St. Louis Fed President Alberto Musalem.
On the earnings front, notable companies including Moderna (MRNA), Humana (HUM), Vistra (VST), PPL Corporation (PPL), and Charter Communications (CHTR) are scheduled to release their quarterly results today. According to Bloomberg Intelligence, S&P 500 companies are expected to post an average +31% jump in third-quarter earnings from a year earlier.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.86%, up +0.41%.
The Euro Stoxx 50 Index is down -1.49% this morning as the market catches up with yesterday’s sharp selloff on Wall Street. Media, healthcare, and consumer-related stocks slumped on Friday. At the same time, some chip-related stocks advanced, tracking the rebound in their U.S. peers in pre-market trading. Despite Friday’s slump, the benchmark index was on track to eke out a weekly gain. Data from Eurostat released on Friday showed that Eurozone monthly retail sales slumped in September as elevated energy prices continued to dampen consumer confidence. Separately, data showed that Germany’s monthly industrial production unexpectedly rose in September despite continued pressure on companies from high energy prices stemming from the Middle East conflict. Meanwhile, Eurozone government bond yields fell on Friday as the equity selloff drove investors toward safe-haven assets. In corporate news, Teleperformance (TEP.FP) tumbled over -16% after the outsourcing firm cut its full-year revenue growth guidance.
Germany’s Industrial Production and Eurozone’s Retail Sales data were released today.
The German September Industrial Production unexpectedly rose +0.7% m/m, stronger than expectations of no change m/m.
Eurozone’s September Retail Sales fell -0.7% m/m and rose +0.4% y/y, weaker than expectations of -0.1% m/m and +0.6% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index ($CHSC) closed down -1.10%, and Japan’s Nikkei 225 Stock Index ($NKY) closed down -5.96%.
China’s Shanghai Composite Index closed lower today, weighed down by weakness in the technology sector. Semiconductor and other AI-related stocks slid on Friday as the tech selloff spread from Wall Street to Asia. However, losses in Chinese tech stocks were less pronounced than those among their Asian peers, with the sector also paring some of its declines in the afternoon session as dip buyers stepped in. Despite Friday’s drop, the benchmark index notched a weekly gain, snapping a six-week losing streak. Meanwhile, China’s 10-year government bond yield fell to an all-time intraday low on Friday amid ample liquidity and strong demand for safe-haven assets. Elsewhere, Reuters reported on Friday that China’s largest flash-memory chipmaker, Yangtze Memory Technologies Co., intends to source up to 70% of the equipment for its planned fourth factory from domestic suppliers. In corporate news, Hua Hong Grace Semiconductor climbed over +6%, defying the global tech selloff, after the chip foundry reported strong Q3 results.
Japan’s Nikkei 225 Stock Index closed sharply lower today as investors continued to unwind AI-related positions following the Democrats’ sweeping victory in the U.S. midterm elections. The Nikkei plunged nearly -6%, its biggest one-day percentage drop since April 2025, falling below the closely watched 60,000 mark. The slump left the index more than 20% below its June peak, pushing it into a technical bear market. Although Friday’s losses were broad-based, declines in chip and other AI-related stocks, which tracked the sharp overnight selloff in their U.S. peers, contributed the most to the Nikkei’s drop. The benchmark posted its steepest weekly decline since March 2020. Meanwhile, Japanese government bonds rallied on Friday as investors turned to traditional safe-haven assets amid the deepening tech-driven equity selloff. On the economic front, data released on Friday showed that Japan’s real wages, adjusted for inflation excluding rents, climbed 2.2% in September from a year earlier, marking a ninth straight month of gains. Elsewhere, Japanese Prime Minister Sanae Takaichi said on Friday that the government was closely monitoring market developments. In corporate news, Japan Tobacco tanked over -19% after Russian authorities seized control of four factories owned by the company. Investor attention now shifts to a speech from Bank of Japan Governor Kazuo Ueda in Washington, D.C., scheduled for later today. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +32.90% at 44.60.
Pre-Market U.S. Stock Movers
Chip and AI infrastructure stocks climbed in pre-market trading, recovering some ground after yesterday’s rout. Sandisk (SNDK), Micron Technology (MU), and Advanced Micro Devices (AMD) each rose +7% or more.
Cloud-computing stocks advanced in pre-market trading, with Astera Labs (ALAB) climbing over +8% and CoreWeave (CRWV) rising more than +7%.
Cloudflare (NET) jumped over +19% in pre-market trading after the cybersecurity company posted better-than-expected Q3 results and raised its full-year guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - November 6th
Enbridge (ENB), Moderna (MRNA), Brookfield Asset Management (BAM), Humana (HUM), Vistra (VST), PPL Corporation (PPL), Charter Communications (CHTR), Plains All American Pipeline (PAA), Brookfield Infrastructure Partners (BIP), Franklin Templeton (BEN), Emera (EMA), Elanco Animal Health (ELAN), MSG Knickerbockers (MSGK), Plains GP Holdings (PAGP), Essent Group (ESNT), Fluor (FLR), VEON Ltd. (VEON), TeraWulf (WULF), Starwood Property Trust (STWD), Algonquin Power & Utilities (AQN), Delek US Holdings (DK), Telephone and Data Systems (TDS), Calumet (CLMT), Atmus Filtration Technologies (ATMU), Oklo Inc. (OKLO), Kyivstar Group (KYIV), Delek Logistics Partners (DKL), Array Digital Infrastructure (AD), MSG Rangers (MSGR), Brookdale Senior Living (BKD), Under Armour (UAA), Sunstone Hotel Investors (SHO), Under Armour (UA), Interface (TILE), Utz Brands (UTZ), Alpha Metallurgical Resources (AMR), Global Partners LP (GLP), Hawaiian Electric Industries (HE), Sylvamo (SLVM), Marcus & Millichap (MMI), Dauch (DCH), Pasqal Holding (PSQL), Bloomin' Brands (BLMN), Koppers Holdings (KOP), Docebo (DCBO), Gray Media (GTN.A), Gray Media (GTN), Gogo Inc. (GOGO), Canopy Growth (CGC), Anika Therapeutics (ANIK), Treace Medical Concepts (TMCI), TechTarget (TTGT), Optimum Communications (OPTU).
On the date of publication, Oleksandr Pylypenko did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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