US stock futures showed a mostly downward trend late Thursday as Wall Street braced for what has become an unpredictable week, marking what is anticipated to be a challenging month ahead. Futures linked to the tech-heavy Nasdaq fell by 0.2%, while those on the S&P 500 dipped 0.1%. Futures for the Dow Jones Industrial Average remained relatively stable, hovering around the flatline.
The S&P 500 is on course for its worst November performance since 2008, fueled by growing concerns over a potential “bubble” in the AI sector. This apprehension persisted despite a strong earnings report from Nvidia and its CEO, Jensen Huang, who aimed to provide reassurance to investors after the company’s stellar performance was unveiled on Wednesday.
Stocks ended Thursday sharply lower, showcasing a significant reversal from earlier gains. Nvidia, which had been up as much as 5%, ultimately finished more than 2% down. Other key players in the chip and major tech sectors mirrored this trend, with the Nasdaq Composite erasing gains of up to 2.5% to close nearly 2% lower. Both the S&P 500 and Nasdaq indices are now at their lowest points since September.
Cryptocurrency markets are also feeling the pressure, as Bitcoin fell below $87,000, marking a sharp downturn from its peak just over a month ago.
Investor sentiment was further jolted by the delayed release of September’s jobs report. Although the report initially suggested positive hiring trends surpassing expectations, the unemployment rate surged to its highest level in nearly four years. Ultimately, the report failed to shift the prevailing narrative surrounding a divided Federal Reserve, with the focus remaining on a probable hold in interest rates during the upcoming meeting next month.
Currently, stocks are moving toward significant weekly losses, with the S&P 500 on track for a decline exceeding 2% and the Nasdaq projected to fall over 3%. For November, the S&P 500 is down approximately 4%, while the Nasdaq has seen a decline of over 6%.
Looking ahead to Friday, investors will review the final consumer confidence reading for November from the University of Michigan, which indicated a preliminary figure near a three-year low. Additionally, several Federal Reserve officials are scheduled to speak, potentially offering insights into the central bank’s monetary policy trajectory for December and beyond.
