U.S. stock futures slipped early Friday, extending the previous session’s sharp selloff — the worst single-day drop for equities in more than a month. Investors were still digesting warnings from Applied Materials (NASDAQ:AMD) that chipmaking equipment spending in China is expected to decline next year due to U.S. export restrictions. Meanwhile, media reports pointed to a modest decline in U.S. jobless claims, and a wave of risk aversion pushed Bitcoin (COIN:BTCUSD) below the $100,000 mark.
Futures retreat
Futures tied to the major U.S. indices were trading lower, indicating additional weakness after Thursday’s slide. As of 02:49 ET, Dow futures were down 69 points (-0.2%), S&P 500 futures dropped 17 points (-0.3%), and Nasdaq 100 futures fell 104 points (-0.4%).
Thursday’s market drop reflected fading optimism from the earlier lift caused by the end of the U.S. government shutdown. New concerns quickly overshadowed that boost, including renewed doubts about whether lofty tech-sector valuations can be sustained. High-profile AI-linked names such as Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) sold off sharply, while cloud giant Oracle (NYSE:ORCL) has now given up more than a third of its value since its September run-up.
Analysts at Vital Knowledge wrote that “[S]tocks suffered a steep slump thanks to continued carnage in tech as investors start throwing in the towel on a year-end rally.”
Markets were also unnerved by uncertainty over whether a divided Federal Reserve will opt for another rate cut at its December policy meeting. The blackout in economic data caused by the prolonged government shutdown has clouded the outlook further, with the White House suggesting that delayed October jobs figures may be incomplete.
Applied Materials signals pressure on China demand
Applied Materials shares fell in after-hours trading after the company warned that spending on semiconductor equipment in China is set to decline next year amid tighter U.S. export controls.
The company said roughly $110 million worth of products could not be shipped during its fiscal fourth quarter because of restrictions — later suspended following the meeting between U.S. President Donald Trump and China’s Xi Jinping last month.
The update follows Applied Materials’ earlier warning that its fiscal 2026 revenue will take a $600 million hit from broadened U.S. export limits affecting advanced chipmaking tools.
Even so, the firm said growing corporate investment in AI is expected to lift demand for its equipment in the latter half of 2026. Despite the after-hours dip, the stock is still up about 36% for the year.
Jobless claims ease slightly — reports
Media reports citing state-level filings suggested initial claims for U.S. unemployment benefits eased last week, although not enough to meaningfully strengthen expectations for a December Fed rate cut.
According to a calculation from Haver Analytics cited by Reuters, first-time claims dropped to a seasonally adjusted 227,543 in the week ending November 8, down from 228,899 the week prior. Analysts at JPMorgan, Goldman Sachs, and Nationwide had forecast similar figures, Reuters said.
A separate Bloomberg estimate put claims near 226,000.
Normally these reports would be released by the Bureau of Labor Statistics, but the ongoing data freeze linked to the federal government shutdown has delayed publication.
The Fed has already delivered two 25-basis-point cuts — in September and October — to support a softening labor market. But with data scarce, CME’s FedWatch tool shows odds of another December cut now hovering near 50%.
Bitcoin sinks under $100,000
Bitcoin fell sharply on Friday, slipping below $100,000 amid broader risk aversion tied to Fed uncertainty and the renewed tech selloff.
The cryptocurrency was headed for a third straight weekly decline, as institutional inflows from large funds, ETFs, and corporate treasuries began to dry up.
By 03:34 ET, Bitcoin was down 6.5% at $96,968.6 after touching an intraday low of $96,866.1. Since early October, the asset has erased more than $450 billion in market value.
China industrial output disappoints
Fresh economic data from China showed industrial production rising just 4.9% in October year-over-year — missing expectations of 5.5% and slowing from 6.5% in September. Retail sales increased 2.9%, slightly better than forecast but still the weakest reading since August last year.
Producers in China continue to struggle with subdued consumer demand and elevated uncertainty, prompting both businesses and households to reduce spending. Persistent deflation in factory-gate prices has added further pressure, even as policymakers pledge more support to stabilize the $19 trillion economy.