On Thursday evening, stock futures saw a slight increase as U.S. stocks continued to dip, largely impacted by declines in major tech companies.
Futures tied to the Dow Jones Industrial Average rose by 95 points, about 0.2%. Meanwhile, the S&P futures and Nasdaq 100 futures each gained around 0.3%.
However, key players in artificial intelligence faced significant losses, with companies like Nvidia, Advanced Micro Devices, Tesla, and Microsoft seeing declines. This downturn added pressure to the overall market, especially after a report revealed that layoffs in October reached their highest levels for that month in over two decades, marking 2025 as the worst year for layoffs since 2009.
During the pre-market session, major U.S. stock indexes ended lower, with technology stocks particularly struggling. The Nasdaq Composite experienced a notable drop, while the Dow 30 fell nearly 400 points, a drop of 1.9%.
This week has been challenging for all three major benchmark indexes, as they’ve been in the red intermittently since Tuesday. This comes in light of concerns about tech sector valuations, fueled largely by substantial declines in significant AI stocks, which have contributed to a concentrated market. The S&P 500 has seen a week-to-date decline of 1.8%, while the Dow Jones showed a similar trajectory amidst its drop.
Despite these losses, some investors remain optimistic. They are looking forward to the conclusion of the lengthy U.S. government shutdown and the potential for a Federal Reserve interest rate cut in December. Attention is also turned toward the Supreme Court’s questioning of the legality surrounding President Trump’s expansive tariffs and the advancement of third-quarter corporate earnings.
Louis Navellier, founder and chief investment officer at Navellier & Associates, commented, “There’s still hope for a year-end rally if the government shutdown wraps up and the tariff issues get sorted out. We’re two weeks away from Nvidia’s crucial earnings report, and any strength there could bolster the AI narrative. If it coincides with a Fed rate cut, we might still hit new year-end highs. Corrections at these levels are common, and there’s no need to panic.”
Typically, the Bureau of Labor Statistics would share nonfarm payroll data on Fridays, but due to the government shutdown, that hasn’t been feasible for the last two months. Dow Jones economists had anticipated a 60,000-job loss and an increase in the unemployment rate to 4.5% in the upcoming report.
