FreeTheAI

US Stock Futures Stabilize Following Tech-Led Selloff

BearishMedium impact
SPX7,765.36 −0.47%

US stock futures showed signs of stabilizing on Friday morning following a technology-driven selloff in the previous session. On Thursday, the S&P 500 (SP:SPX) lost 0.47% to close at 7765, and the Nasdaq Composite fell 1.25%, marking a second straight day of declines for both indexes. Meanwhile, the Dow Jones Industrial Average managed a slight gain of 0.1%.

The market pullback was triggered by reports indicating that annualized revenue for artificial intelligence developer OpenAI reached $50 billion at the end of September. This figure fell short of the $68 billion estimate widely reported last month, sparking concern over AI growth prospects. The news hit semiconductor companies particularly hard, with Intel Corporation (INTC) tumbling 5.3%, Sandisk losing 4.9%, Micron Technology (MU) dropping 4.8%, Advanced Micro Devices (AMD) sliding 3.9%, and NVIDIA Corporation (NVDA) falling 2.9%.

Investors are preparing for the release of US consumer sentiment data for October to gauge the health of the economy. Additionally, the market will monitor upcoming corporate earnings reports from major firms, including Delta Air Lines (DAL) and BlackRock (BLK). In extended trading, SpaceX rose over 4% following its announcement of an agreement to acquire a nationwide spectrum portfolio.

Key points

  • S&P 500 and Nasdaq Composite fell on Thursday for the second consecutive session, while the Dow edged up 0.1%.
  • Technology shares declined following reports that OpenAI's annualized revenue of $50 billion at the end of September missed previous estimates of $68 billion.
  • Chipmakers led the market losses, with Intel dropping 5.3%, Sandisk down 4.9%, Micron falling 4.8%, AMD sliding 3.9%, and Nvidia losing 2.9%.
  • SpaceX shares climbed more than 4% in after-hours trading after the company announced a deal to purchase a nationwide spectrum portfolio.
  • Market participants are waiting for October consumer sentiment data and earnings reports from Delta Air Lines and BlackRock.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

How we writeDisclaimer

Questions and answers

Why did US tech stocks sell off?

Technology shares declined following reports that OpenAI's annualized revenue of $50 billion at the end of September was below previous estimates of $68 billion.

Which companies led the stock market decline?

Chipmakers led the losses, with Intel falling 5.3%, Sandisk losing 4.9%, Micron dropping 4.8%, AMD sliding 3.9%, and Nvidia down 2.9%.

What upcoming events are stock investors watching next?

Investors are focusing on October's US consumer sentiment data alongside corporate earnings reports from Delta Air Lines and BlackRock.