Overnight Developments
Nasdaq futures rebound after the worst rout in 19 months — CNBC
Thursday was the worst session for all three major averages since April 2025. The Nasdaq Composite fell 5.5% and is now in correction (more than 10% below its high). The S&P 500 lost 4.4% and the Dow fell more than 1,800 points (3.4%). All 11 S&P sectors closed lower, but AI build-out names led the decline: Nvidia fell about 9% and Micron about 17%. The trigger is fear that the Democratic sweep of Congress and key governorships will slow data-center construction. Texas Governor-elect Gina Hinojosa said Thursday evening that “we need to stop what we are doing with data centers.” This morning dip buyers are back in chips: Nasdaq-100 futures are up about 1.7%, while Dow futures are still down about 1%. Affected sectors: Semiconductors, AI infrastructure, Megacap tech
The selloff swept Asia: Nikkei and Taiex enter bear markets — CNBC
Asia took Thursday’s Wall Street rout on the chin. The Nikkei 225 fell 5.96% and the Taiex fell 4.51%, putting both in bear-market territory. The Kospi dropped more than 6% and is down 11.7% this week. Individual chip names fell harder: SK Hynix -10.4%, SoftBank Group -10.8%, Kioxia -8.7%, Samsung -6.4% and TSMC -4.7% in Taipei. The Philadelphia Semiconductor Index had dropped 12.2% on Thursday. Goldman’s Timothy Moe blamed position unwinding and stop-loss selling: “The market’s tendency is always to shoot first and ask questions later.” Affected sectors: Semiconductors, Memory, AI hardware supply chain
October jobs report at 8:30 a.m. ET — CNBC
The next catalyst arrives before the open. The consensus is +59,000 payrolls with unemployment steady at 4.2%. A weak print would feed growth worries on top of the AI selloff. A hot one would revive rate-hike fears, and those fears were part of what was already pressuring the AI trade. Affected sectors: Rates, Broad market
Iran risk keeps Brent near $100 — CNBC
Rapidan Energy’s Bob McNally puts the odds of a resumption of US-Iran fighting at 80% now that the midterms are over, and expects both crude benchmarks above $100. On the other side, Reuters reported Friday that Iran sent the US a nuclear proposal through Qatar. It is conditioned on “seven demands,” including an end to the naval blockade, in exchange for free passage through Hormuz. Brent was last near $98.65 (+0.4%) after touching almost $100 overnight, with WTI near $91. Affected sectors: Energy, Airlines, Defense
Futures & Pre-Market
| Index | Futures | Change |
|---|---|---|
| S&P 500 | 7,397.25 | +0.3% |
| NASDAQ | 27,148.75 | +1.7% |
| DOW | 51,057.00 | -1.0% |
Changes vs. Thursday’s 4:00 p.m. ET print, as of ~07:00 ET. ETF pre-market quotes agree: SPY +0.4%, QQQ +1.7%, DIA -0.9%.
Watchlist Movers
The chip and AI-infrastructure names are bouncing after Thursday’s rout. None of these moves has a stock-specific catalyst; this is a sector rebound.
- TSM +7.3% pre-market. The ADR is bouncing even though TSMC fell 4.7% in Taipei today.
- INTC +6.5%, SMCI +6.1%, NVDA +3.9%. Nvidia is up about 5% after Thursday’s 9% drop.
- OKLO +6.5%, SMR +5.5%, NNE +3.7%. The nuclear names are bouncing alongside the data-center trade.
- RKLB +5.2%, HIMS +5.8%. These are high-beta risk-on bounces with no company news found.
- On the downside, the defensives are slipping as money rotates back into tech: NKE -2.7%, PFE -2.6%, COST -2.1%, UNH -2.1%.
Other Notable Movers
- NET +19.8%, ABNB +12.6%. Both rallied after quarterly results.
- IREN +18.3%. The neocloud is rebounding after its Thursday plunge, even though it said some revenue will slip into early next year.
- MRNA +10.5%. Moderna beat on Q3 and raised its 2026 revenue-growth outlook to 15–25%.
- MU +8.6%, after a 17% drop on Thursday.
- TEAM -18.2%, FIVN -19.2%. Both fell after weak forward guidance.
International Markets
Asia was a sea of red. Japan, Korea and Taiwan took the heaviest losses, while China held up better: Hang Seng -1.3%, Shanghai -1.1%, CSI 300 -1.4%. India’s Nifty is being pitched as an AI hedge after gaining nearly 9% in a month. Europe is lower across the board: FTSE 100 -2.3%, DAX -2.4%. Tech is one of the smallest decliners there, with ASML up about 4%, while health care and media lead the losses.
What to Watch at Open
Watch whether the chip bounce holds once the 8:30 jobs report hits. Nasdaq futures are up nearly 2% while Dow futures are down 1%, so a weak payrolls print could quickly turn this morning’s dip-buying into a second leg down.
This alert is for informational purposes only and does not constitute financial advice.