U.S. stock futures pointed sharply lower on Friday, signaling that Wall Street may face another wave of selling after Thursday’s steep decline.
Technology shares look set to remain a major drag on the market, with chipmakers Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) sinking more than 3 percent in premarket trading amid renewed valuation worries.
Other tech leaders, including Palantir Technologies (NASDAQ:PLTR) and Tesla (NASDAQ:TSLA), were also sliding before the opening bell, putting them on track for heavy weekly losses.
“Markets are down across the board as investors fret about cracks in the narrative that’s driven the mother of all tech rallies over the past few years,” said Dan Coatsworth, head of markets at AJ Bell.
He continued, “Investors are worried about rich equity valuations and how billions of dollars are being spent on AI just at a time when the jobs market is looking fragile.”
Selling pressure is also being fueled by uncertainty over future interest rate policy after fresh comments from Federal Reserve officials and indications that key U.S. economic reports may never be published because of the prolonged government shutdown.
According to the CME FedWatch Tool, expectations for another quarter-point rate cut at the upcoming Fed meeting have fallen to 53.2 percent, down from 66.9 percent a week earlier.
Stocks fell sharply throughout Thursday’s session, extending losses that began at the open. All three major averages posted sizeable declines after two days of mixed results.
By the close, the indexes finished slightly off session lows: the Nasdaq dropped 536.10 points, or 2.3 percent, to 22,870.36; the S&P 500 slid 113.43 points, or 1.7 percent, to 6,737.49; and the Dow sank 797.60 points, or 1.7 percent, to 47,457.22.
The Dow’s retreat from Wednesday’s record close was exacerbated by a 7.8 percent plunge in Disney (NYSE:DIS), after the company delivered stronger-than-expected earnings but revenue that disappointed investors.
High-valuation tech names remained under pressure, with Nvidia leading a broad sell-off that also weighed on firms such as Broadcom (AVGO) and Alphabet (GOOGL).
Market sentiment was also rattled by uncertainty over whether crucial U.S. economic indicators will ever be released following the record-long government shutdown.
Although President Donald Trump approved temporary funding, White House spokesperson Karoline Leavitt said Wednesday that the October jobs and inflation reports are “likely never being released” due to the shutdown.
These delays mean traders — and the Federal Reserve — may continue “flying blind” when assessing the health of the U.S. economy.
Hardware manufacturers were among the session’s worst performers, with the NYSE Arca Computer Hardware Index sinking 7.0 percent. Semiconductor, networking, and software stocks also sold off sharply, contributing to the Nasdaq’s steep decline.
Beyond tech, gold miners, financial companies, and airline stocks also posted notable losses as selling spread across sectors.
Advanced Micro Devices stock price