U.S. stock futures saw a slight uptick on Thursday night, just hours after major indexes were dragged lower by a sharp sell-off in artificial intelligence–linked stocks.
Dow Jones Industrial Average futures rose 136 points (0.3%), while S&P 500 futures also climbed 0.3%. Nasdaq-100 futures edged up 0.2%.
Tech Reversal Pulls Markets Down
The market suffered a sudden reversal in the second half of Thursday’s session as investors grew cautious ahead of the Federal Reserve’s upcoming interest rate decision.
Nvidia initially boosted market sentiment with strong Q3 earnings and upbeat guidance, lifting the Dow by nearly 718 points and pushing the S&P 500 up 1.9%. However, the rally quickly faded. Nvidia closed 3.2% lower, putting the stock down 10.8% for November—its worst monthly performance since March.
By the closing bell:
- Dow Jones fell 386 points (-0.8%)
- S&P 500 dropped 1.6%
- Nasdaq Composite slid nearly 2.2%
- Bitcoin hit its lowest level since April 21
Jobs Data Adds to Market Jitters
Fresh labor data also weighed on sentiment. September job growth came in stronger than expected, but the unemployment rate weakened, signaling an uneven labor market. Expectations for a December Fed rate cut remained muted, with traders pricing in only a 40% chance of a quarter-point reduction, according to CME’s FedWatch Tool.
Market strategist Mark Luschini noted that the ongoing correction since late October “has not yet been fully exhausted,” adding that conditions are becoming oversold but that upcoming economic data may determine whether a rebound or a deeper pullback comes next.
Indexes Headed for a Losing Week
After weeks of profit-taking in high-flying stocks:
- S&P 500 is down 2.9% week-to-date
- Dow has slipped nearly 3%
- Nasdaq has fallen 3.6%
Some analysts say the pullback is normal after strong rallies earlier this year. Carson Group strategist Ryan Detrick said market sentiment has swung to extreme fear levels, suggesting a contrarian setup that “was necessary to shake out weak hands.”
Market Breadth Shows Heavy Declines
The sell-off was broad:
- 76% of NYSE-listed stocks fell, with declining volume representing 81% of total trades.
- New 52-week lows outnumbered highs on the NYSE 174 to 50.
- On the Nasdaq, 73% of stocks declined, with new lows beating new highs 513 to 125.
Stocks Moving After Hours
Intuit jumped nearly 4% after beating earnings expectations.
Gap surged almost 5% as same-store sales rose 5%, boosted by the viral “Better in Denim” campaign.
Ross Stores gained over 2% after posting better-than-expected earnings and noting strong back-to-school demand.
Futures Open Flat Thursday Evening
As of 6 p.m. ET:
- S&P 500 futures hovered slightly above flat
- Nasdaq-100 futures dipped less than 0.1%
- Dow futures rose 44 points (<0.1%)