
Nasdaq Futures Rise, Dow Sinks After AI Rout Hits Wall Street; Focus on payroll
Investing.com– U.S. stock index futures were mixed Friday morning, with Nasdaq futures pointing to some recovery after a sharp selloff in the technology and artificial intelligence sectors this week.
Still wondering which stocks will beat the market? Our AI portfolio is updated monthly and outperforms the S&P 500 by 118%. See this month’s list »
Dow Jones futures fell as attention turned to upcoming labor market data for more clues about the economy and interest rates, with markets on guard for any signs of outsized labor market strength.
Nasdaq 100 futures rose 0.68% to 26,936.0 points as of 1:17 a.m. ET (06:17 GMT). S&P 500 futures fell 0.1% to 7,375.50 points, while Dow Jones futures fell 1% to 51,082.0 points.
Futures remained jittery after Wall Street suffered its worst day in nearly 19 months on Thursday, hit mainly by a major collapse in high-tech and artificial intelligence stocks.
Chipmakers were by far the hardest hit, with the Philadelphia Semiconductor Index sliding 12.25% for the day. NVIDIA Corporation (NASDAQ:NVDA), which recently relinquished its title as the world’s most valuable publicly traded company, fell nearly 10% on Thursday, while rival AMD (NASDAQ:AMD) fell 17%.
Microsoft Corporation (NASDAQ: MSFT), Meta Platforms Inc (NASDAQ: META), Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOGL) – all of which have significant exposure to data center spending – fell between 2% and 4%, while iPhone maker Apple Inc (NASDAQ: AAPL) performed relatively better with a 1.5% drop.
Losses carried over into Friday’s Asian session, with South Korea’s KOSPI on track to lose 20% from late October levels, while Japan’s Nikkei 225 entered a bear market.
The Democratic Party’s victory in the midterm elections – where it secured majorities in both houses of Congress – has sparked increased concerns about greater regulatory oversight over AI development and data center construction.
Not sure what to buy before profits? Our AI’s recent pre-earnings calls generated gains of +77% to +118% after earnings fell. See this month’s earnings »
Texas Governor-elect, Democrat Gina Hinojosa, has called for a pause on any construction of new data centers until laws are in place to protect citizens.
His comments reflect broader rhetoric among Democratic lawmakers, particularly amid growing voter resistance against the construction of data centers across the country.
The development comes amid already growing doubts about the long-term feasibility of AI, after a series of results in mid-September from Wall Street’s largest firms indicated uncertain returns on their massive investments in AI.
Gn bussni