Stock Market Live Updates: Nasdaq drops 5%, Dow Jones 1,600 pts as AI selloff intensifies
| ePaper |
Business News›Markets›US Stocks›Wall St Guide›US Stock Market Live Updates: Nasdaq futures slip as Qualcomm tumbles 10%; Dow, S&P 500 gain
Dow Jones | Nasdaq | Stock Market Live: US stock futures trade mixed as Qualcomm's weak chip sales outlook weighs on Nasdaq, while Dow and S&P 500 futures extend gains after Wednesday's rally. AI infrastructure stocks remain under pressure, while investors track oil prices, Federal Reserve commentary and Friday's US jobs report.
US stock futures trade mixed on Thursday as semiconductor and AI infrastructure stocks extend losses, with Qualcomm tumbling after missing chip sales estimates. Dow and S&P 500 futures remain higher following Wednesday's rally, while investors assess the impact of the Democrats' midterm victory on data centre expansion and government policy. Oil prices rebound after a sharp fall, while markets await the October US jobs report.
1 New Update
U.S. initial claims for state unemployment benefits fell by 6,000 to a seasonally adjusted 189,000 last week, matching a 57-year low previously touched in July and beating analyst expectations. Low layoff rates continue to anchor the labor market, supported by solid domestic demand, corporate profits, and a shrinking labor pool, even as permanent hiring remains constrained by broader economic and geopolitical uncertainties.
A separate report from Challenger, Gray & Christmas showed that while planned job cuts rose 2% over the month in October, they dropped 71% year-over-year to their lowest October level since 2023. Meanwhile, planned seasonal hiring surged 57% from last year, indicating that companies are prioritizing temporary holiday staffing while holding onto existing workers to preserve headcount flexibility.
Investors turned their attention to comments from at least three Federal Reserve officials, including Richmond Fed President Thomas Barkin, ahead of Friday's October US jobs report. Markets assessed the interest rate outlook amid persistent inflation concerns. Elsewhere, Fair Isaac fell 8.5% after missing fourth-quarter profit estimates, while Snap declined 9% following weaker-than-expected third-quarter revenue. AppLovin jumped 20% after beating profit estimates.
Brent crude futures rose more than 1% on Thursday after plunging over 8% in the previous session, providing some relief to investors concerned about inflation. Oil prices had remained volatile throughout the year amid fears of supply disruptions linked to the Middle East conflict. The sharp decline in crude prices on Wednesday had also supported Wall Street's rally, as lower energy costs eased some inflation concerns.
Most large-cap technology stocks built on Wednesday's gains as investors assessed whether a slower AI infrastructure expansion could benefit established technology companies. Amazon, Meta Platforms and Alphabet rose more than 1% in premarket trading. Meanwhile, Tesla and SpaceX fell over 1% each, extending their recent losses. Elon Musk had spent nearly half a billion dollars backing Republican candidates, including efforts to retain Republican control in Texas, the home state of both companies.
AI infrastructure stocks remained under pressure after the Democrats' sweeping midterm victory, including in states where opposition to rapid data centre expansion had been growing. UBS strategists warned that nearly 30% of expected data centre additions in 2028 could face delays or cancellations. IREN, Hut 8 and Applied Digital fell between 1.1% and 2.7%, while CoreWeave and Nebius Group lost around 3% each.
Nasdaq futures dropped on Thursday as semiconductor stocks extended losses following Wednesday's selloff. Qualcomm plunged 9.6% in premarket trading after missing Wall Street estimates for fourth-quarter smartphone chip sales amid sluggish demand and declining Apple-related revenue. Nvidia fell 0.8%, Marvell Technology slipped 3.4% and Intel lost 2%. Dow futures rose 0.62%, while S&P 500 futures gained 0.2%, reflecting a mixed mood across Wall Street.