Nasdaq 100 futures rose 1.2% on Friday as dip buyers steadied chip stocks after Thursday's AI-driven rout. Traders now turn to September nonfarm payrolls data, which could shape the Federal Reserve's next move on rates.
Nasdaq 100 futures climbed 324 points, or 1.2% by 05:25 ET on Friday, as dip buyers offered chip stocks a respite. S&P 500 futures gained 19 points, or 0.3%, while Dow futures slid 439 points, or 0.9%.
Thursday's selloff wipes an estimated $2.5 trillion off the Nasdaq Composite
U.S. markets tumbled on Thursday as traders, fearful of greater Democratic regulation of AI, rushed to exit exposed stocks and raise cash. The wipeout shed an estimated $2.5 trillion in market value from the Nasdaq Composite, a drop not seen since March 2020.
Chipmakers took the worst of it. The Philadelphia Semiconductor Index slid 12.25% on the day, Nvidia slumped nearly 10% and AMD fell 17%. Microsoft, Meta Platforms, Amazon and Alphabet, which all plan to spend heavily on AI infrastructure, fell between 2% and 4%.
The selloff also reached the broader market. The S&P 500 slumped 4.36% and the Dow Jones Industrial Average fell 3.44% by the close.
Losses spread to Asia
Losses then spilled into Friday's Asian session. The MSCI Asia Pacific index fell to its largest decline since 2025, and Taiwan's key index dipped into bear market territory. In South Korea, stocks fell so far that a circuit breaker was triggered.
Analysts at Yardeni Research see a buying opportunity. They described the political backlash as a constraint on AI investment, but called it "speed bumps, not roadblocks".
Payrolls could add rate pressure
Investors are also watching September nonfarm payrolls, due Friday morning and expected to show a pickup in jobs growth from the prior month. Signs of labor-market resilience would give the Fed more headroom for another rate hike, a scenario that could bring more pain for Wall Street.
The Fed raised rates by 25 basis points in September, with policymakers indicating that sticky inflation was likely to prompt more hikes.
Source: Investing.com
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