Stock futures were mostly sliding on Friday, as investors continued to fret about artificial-intelligence valuations following the previous session’s stunning selloff.
S&P 500 futures dropped 0.5%, and contracts tied to the Nasdaq 100 were 0.9% lower. Futures tracking the Dow Jones Industrial Average climbed 129 points, or 0.3%. Bitcoin, which has been a leading indicator for stocks in recent days, slid 4.6% in early trading.
The three major indexes see-sawed on Thursday, starting higher before slumping as Nvidia’s solid earnings failed to ease fears about bloated artificial-intelligence valuations. It was the first time the Nasdaq gained 2% or more at its intraday high and fell 2% or more at the low since April, according to Dow Jones Market Data.
It’s not obvious what sparked the selloff, although the best assumption is probably that investors are worn out following a breakneck rally for AI stocks.
The market also struggled to make sense of the delayed September nonfarm payrolls report, which topped economists’ expectations. While the jobs number is a good sign for the U.S. economy, it could also strengthen the case for the Federal Reserve to hold interest rates steady next month.
“It’s hard to pin the blame for the global sell-off on the delayed September payrolls report since risk assets initially took the data well,” Deutsche Bank macro strategist Jim Reid said. “That said, the release did offer enough moving parts that you could construct completely different narratives depending on which line you chose to focus on.”
The yield on the 10-year U.S. Treasury note was flat at 4.08% on Friday. The dollar slid 0.1% against a weighted basket of its peers, and gold futures fell 0.4% to $4,044 an ounce.
