Following a 5.5% plunge in the Nasdaq, US futures show mixed results as traders weigh AI regulatory risks against the critical upcoming US Nonfarm Payrolls data.
The index plunged 5.5% on Thursday, its worst single-day drop since the April 2025 tariff turmoil, and is now more than 10% below its recent peak in correction territory. Fears that Democratic policies could slow data center expansion hit AI infrastructure and chip names (Nvidia, AMD, Micron, SanDisk) hardest, leaving sentiment fragile into next week. Nasdaq 100 futures rebounding 0.90% to around 26,990 may limit further immediate losses.
Investors feared that Democrats could impose tighter regulations on the artificial intelligence sector, slowing data center expansion; the index dropped 5.5% on Thursday and is now more than 10% below its recent peak.
The upcoming US Nonfarm Payrolls report, which is expected to play a critical role in shaping expectations for the Federal Reserve's December policy decision.
The S&P 500 fell 4.4% on Thursday as part of Wall Street's worst single-day drop since the April 2025 tariff-driven turmoil, dragged down by steep losses in AI-related chipmakers. Futures are only marginally higher at around 7,390, indicating no decisive recovery yet. The pending NFP report keeps direction uncertain for the coming days.
It fell 4.4% on Thursday, part of the market's worst single-day decline since the tariff-driven turmoil of April 2025.
S&P 500 futures are up only 0.06% around 7,390 in early European hours Friday, so futures are roughly flat rather than clearly recovering.
The Dow fell 3.4% on Thursday, its share of Wall Street's worst single-day drop since April 2025, amid the AI regulation scare. Dow futures are still down 0.85% around 51,170 in early European hours Friday, pointing to continued pressure at the open. Less tech exposure than the Nasdaq makes it relatively more resilient.
Dow Jones futures are down 0.85% around 51,170 during early European hours on Friday.
No, the Dow fell 3.4% on Thursday, less than the Nasdaq Composite's 5.5% plunge, since AI-related chipmakers bore the brunt of the sell-off.
US stock futures remain mixed as investors digest a severe market sell-off that saw the Nasdaq Composite enter correction territory. Thursday's session marked the worst single-day decline since April 2025, driven by fears that potential Democratic regulations could stifle AI infrastructure and data center growth. Market participants are now shifting their focus to the upcoming Nonfarm Payrolls report to gauge the Federal Reserve's policy trajectory for December.
The index dropped 5.5% on Thursday due to investor fears that Democratic policies could impose tighter regulations on the AI sector, potentially slowing data center expansion.
Following Thursday's worst single-day drop since April 2025, Dow futures are down 0.85%, while S&P 500 and Nasdaq 100 futures show marginal gains in early Friday trading.