Nasdaq futures rebound as chip stocks steady after AI-led sell-off

what happened

Nasdaq futures moved higher on Friday as semiconductor shares recovered from a technology-led sell-off that, according to Reuters, wiped close to $3 trillion from the market value of S&P 500 companies. Investors linked the slide to worries that a Democratic takeover of Congress could bring stricter rules on artificial intelligence.

The Nasdaq Composite posted its sharpest daily loss in 19 months on Thursday, sliding into correction territory and heading for a fourth consecutive weekly decline. Jane Gibbons, equity strategist at Jefferies, called the drop 'reactionary, not a fundamental reset', pointing to a mix of concerns about AI spending, policy and inflation. The decline followed midterm results that included key data-center states, which raised doubts about how fast those facilities can be built.

In premarket trading Nvidia gained about 4.5 percent after its worst day since January 2025, while AMD, Intel, Broadcom and Micron rose between 4.6 and 8.2 percent. The CBOE Volatility Index, the market's main fear gauge, eased slightly from Thursday's sharp spike. Brent was roughly flat on Friday, and traders priced in a more than 65 percent chance of a December rate hike, according to the CME FedWatch Tool, ahead of the October jobs report.

why it matters

The session shows how sensitive tech valuations have become to political developments and rate expectations. Thursday's rise in oil prices added to inflation worries, so the jobs report could again shift rate bets and set the tone for growth stocks.

market impact

Tech and chip stocks: the partial rebound after the sell-off supports Nasdaq futures

• ▲Nasdaq 100 futures pressure up — chip and AI stocks recovered from the sharp losses of the prior session
• ▲Nvidia shares pressure up — premarket gain follows its worst day since January 2025

instruments