TLDR
- US stock futures were mixed Friday after Thursday’s sell-off in artificial intelligence stocks.
- The Nasdaq Composite fell 5.5% and entered correction territory, while the S&P 500 lost 4.4%.
- Japan’s Nikkei 225 entered a bear market and South Korea’s Kospi fell more than 6%.
- The VIX volatility index jumped 70% to 28, and oil fell below $100 per barrel.
- The October jobs report is due at 8:30 a.m. ET.
US stock futures were mixed early Friday after a sharp sell-off in artificial intelligence stocks. Investors also waited for the October jobs report.
Dow Jones Industrial Average futures fell between 0.6% and 0.7%. S&P 500 futures rose between 0.3% and 0.5%, and Nasdaq-100 futures gained between 1% and 1.7%.
On Thursday, all three major averages had their worst one-day performance since April 2025. The Nasdaq Composite fell 5.5%, and the S&P 500 lost 4.4%.
The Dow dropped more than 1,800 points, or 3.4%. The Nasdaq closed more than 10% below its most recent high, which put it in correction territory.
Worries about a slowdown in data center construction hit the market. Those concerns followed big wins for Democrats in the House, the Senate and key state governor races.
One report said the sell-off erased $2.3 trillion in market value. All 11 sectors of the S&P 500 closed lower.
What just happened?
The Nasdaq 100 just posted its largest daily drop since the 2020 Pandemic, with the S&P 500 erasing -$3 trillion today.
Just 24 hours ago, the Dow surged +1,600 points after the Democrats "swept" the Midterms.
So, what changed? Let us explain.
(a thread) pic.twitter.com/pf5ZW1Q9Qd
— The Kobeissi Letter (@KobeissiLetter) November 5, 2026
Chip and AI-linked stocks took the biggest hits. Micron Technology and Advanced Micro Devices each fell 17%, and CoreWeave slid 10%.
Nvidia dropped 9% and turned negative for 2026. The Magnificent Seven group of tech giants lost more than $1 trillion in combined market value.
Asia and Europe Feel the Chip Rout
The sell-off spread to Asia on Friday. South Korea’s Kospi fell more than 6% in a semiconductor stock rout.
Japan’s Nikkei 225 dropped 5.9% and entered bear market territory. Both markets are heavy with technology and chip companies.
European stocks opened sharply lower, but losses eased by mid-morning. Oil prices began to fall around that time.
Europe’s Stoxx 600 tech index was up 0.44%. Chip equipment makers ASML and ASMI rose 4% and 3%.
Stuart Clark, a portfolio manager at Quilter, said the size of the falls in some big names was striking. He said it also shows the concentration risk that has built up in US stocks.
Clark said a small number of technology and chip stocks now carry so much weight in the indexes. Weakness in those names quickly leads to large falls for the Nasdaq and S&P 500.
Jobs Report and Oil in Focus
The VIX volatility index jumped 70% to 28. Brent and WTI crude futures fell below $100 per barrel as traders watched the war in the Middle East.
The Nasdaq is down 4.4% for the week, and the S&P 500 is off almost 3%. The Dow is down just 0.5%.
The Labor Department will release the October jobs report at 8:30 a.m. ET. Economists expect between 59,000 and 65,000 jobs added, with the unemployment rate holding at 4.2%.
In Friday’s quotes, Nvidia was up 4.2% and Micron was up 7.84%.
