Stock futures steady after a sharp tech sell-off as oil hits a five-month high
U.S. stock futures were mixed to slightly lower early Friday, before the market opened, after Thursday’s steep sell-off in technology and AI stocks, Yahoo Finance reported. Oil kept climbing, with Brent crude near $114 a barrel, its highest level in five months, Reuters reported. These are premarket moves, not the day’s closing numbers.
The premarket picture: As of 5:42 a.m. ET, Nasdaq-100 futures were up 0.03%, while S&P 500 futures were down 0.17% and Dow futures were down 0.55%, TipRanks reported. Yahoo Finance reported Dow and S&P 500 futures down about 0.2% and Nasdaq-100 futures little changed.
Thursday’s sell-off: The Nasdaq fell 2.6% on Thursday, its biggest drop since June, and the Philadelphia Semiconductor Index fell almost 7%, Reuters reported. Investors have worried about the large borrowing needs of AI companies and a possible slowdown in spending on AI infrastructure, according to Reuters and Yahoo Finance. Some AI stocks, including CoreWeave, were rebounding before the open, The Wall Street Journal reported.
Oil and bonds: Houthi attacks on Saudi Arabia and reports that the U.S. and Israel have drawn up plans for new strikes on Iran after the U.S. midterm elections pushed Brent crude to $114 a barrel, Reuters reported. Investors moved into U.S. Treasurys on Thursday, and the 10-year yield fell back below 5%, according to Reuters.
Interest rates: Traders have scaled back bets on a U.S. Federal Reserve rate hike, and a December hike is no longer fully priced in, Reuters reported, citing Deutsche Bank. This is market news, not investment advice.
Sources
- The Globe and Mail (Reuters) — Premarket: Tech selloff relents, oil at five-month high
- Yahoo Finance — Stock market today: Dow, S&P 500, Nasdaq wobble after sharp tech sell-off
- TipRanks — Stock Market Today, Oct. 23 – Futures Mixed as Nasdaq Attempts a Rebound
- The Wall Street Journal — Stock Market Today: Oil Prices Highest in Five Months as Mideast Tensions Rise