TLDR
- Dow, S&P 500, and Nasdaq futures rose slightly Friday after a sharp Thursday sell-off
- The “Magnificent Seven” lost nearly $800 billion in market value in a single day
- Alphabet and Tesla earnings disappointed, triggering the tech rout
- Trump’s new Section 301 tariffs of 10–12.5% on major trading partners took effect overnight
- Bitcoin dipped 0.4% to $65,360 as risk sentiment weakened
US stock futures edged higher Friday morning as investors tried to find their footing after one of the worst days of the year for tech stocks.
Dow futures gained around 0.5%. S&P 500 futures rose 0.2%. Nasdaq futures were barely positive, up just 0.1%.
The modest recovery comes after a brutal Thursday session. The so-called “Magnificent Seven” group of mega-cap tech stocks lost nearly $800 billion in combined market value in a single day.
The sell-off was triggered by earnings from Alphabet and Tesla, both of which showed rising AI spending that spooked investors. Markets in Asia followed Wall Street lower, with Japan’s Nikkei and South Korea’s KOSPI both falling.
Trump Tariffs Add to the Pressure
Overnight, a new round of US tariffs went into effect. The Trump administration’s Section 301 tariffs now apply to nearly all US imports, with rates between 10% and 12.5% on the country’s biggest trading partners.
Some energy products were exempted from the tariffs. The White House said the new structure was designed to hold up better under legal challenges than earlier versions.
Oil prices pulled back on Friday, with Brent crude falling about 2% to trade just under $99 a barrel. That eased some inflation fears. However, Brent is still on track for a weekly gain after briefly touching $100 a barrel Thursday.
AI Spending Fears Weigh on Nasdaq
The Nasdaq is lagging the other two indexes in pre-market trading. That suggests Wall Street is still uneasy about the pace of AI investment.
Chipmakers Micron and Sandisk were both lower in pre-market trading. Deutsche Bank analyst Jim Reid said the combination of oil price spikes and AI uncertainty created “a challenging 24 hours for markets.”
The 10-year Treasury yield held steady at 4.70% Friday, after hitting an 18-month high Thursday. Higher yields can pressure growth stocks by making future earnings worth less today.
The dollar was flat. Bitcoin fell 0.4% over 24 hours to $65,360, reflecting the cautious mood across risk assets.
Earnings due Friday include American Express, NextEra Energy, and Verizon. Economic data on the agenda includes S&P Global’s flash purchasing managers index for July and new home sales figures.
All three major indexes remain on track for weekly losses.
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