U.S. stock futures inched higher Thursday night after a sharp pullback in the market’s largest technology and AI-linked names pushed major indexes lower earlier in the session. Futures tied to the Dow Jones Industrial Average rose about 95 points (roughly 0.2%), while S&P 500 and Nasdaq-100 futures each gained roughly 0.3%. The retreat followed significant declines in major AI leaders such as Nvidia, Advanced Micro Devices, Tesla and Microsoft, and came amid data showing October job-cut levels at their highest for the month in more than 20 years — making 2025 the worst year for layoffs since 2009. Investors are weighing hopes for an end to the U.S. government shutdown and a possible Federal Reserve rate cut in December against concentrated tech-sector risk and mixed corporate results.
Key takeaways
- Dow futures were up about 95 points (≈0.2%) while S&P 500 and Nasdaq-100 futures rose ~0.3% after the cash session decline.
- Major AI and tech names — including Nvidia, AMD, Tesla and Microsoft — led losses that pressured the market; the Nasdaq Composite fell 1.9% in the prior session.
- The Dow closed nearly 400 points lower on the same day; all three benchmark indexes are negative for the week (S&P -1.8% WTD, Dow -1.4% WTD, Nasdaq -2.8% WTD).
- Bureau of Labor Statistics data showed October job-cut announcements reached a two-decade high for that month, marking 2025 as the worst year for layoffs since 2009.
- Payrolls data due Friday were delayed because of the government shutdown; economists surveyed by Dow Jones had expected a 60,000-job decline and a 4.5% unemployment rate.
- Tesla shareholders voted in favor of CEO Elon Musk’s long-term pay plan with roughly 75% support among voting shares, a package that would boost his potential ownership and tie payouts to multi-year milestones.
- After-hours movers included Take-Two (-7%) on a new delay to Grand Theft Auto VI, Airbnb (+5%) and Affirm (+12%) after quarterly beats, and DraftKings (-4%) after results missed estimates.
Background
The U.S. equity market has become increasingly concentrated in a handful of large-cap technology and AI-focused companies. Heavy gains among those names over the past year left valuations stretched by many measures, so even modest negative headlines or profit-taking can trigger outsized index moves, particularly in the Nasdaq. Historically, concentrated rallies are prone to sharper corrections as investors reassess growth expectations versus near-term earnings and macro risks.
Macro uncertainty is compounding the valuation debate. A partial federal government shutdown has delayed the Bureau of Labor Statistics’ regular nonfarm payrolls release, removing a routine data anchor for traders. At the same time, labor-market signals — including a spike in announced job cuts — are feeding debates over whether the Federal Reserve will cut rates in December, which investors view as a potential tailwind for equities.
Corporate-specific developments are also shaping the landscape. Big-cap earnings, product delays and governance moves (such as Tesla’s newly approved pay plan) influence sentiment more when markets are tech-heavy and narrow. The combination of macro headwinds, high-profile corporate events and concentrated ownership increases the likelihood of episodic volatility in coming weeks.
Main event
Stocks fell across the board in the regular session, driven largely by weakness in AI and semiconductor-related stocks. The Nasdaq Composite led declines with a 1.9% drop, while the Dow lost nearly 400 points. The S&P 500 also closed lower, extending a midweek slide that left all three benchmarks negative for the week.
Investors pointed to valuation concerns after several large AI leaders gave back recent gains, triggering rotation and profit-taking. Nvidia and AMD, central to the AI hardware narrative, were notable contributors to the sell-off; software and platform names such as Microsoft also moved lower. Market participants highlighted that when a small group of stocks has carried much of the market’s advance, reversals among those leaders can disproportionately affect headline indices.
Hiring and layoff signals added to the unease. Reports showed October job-cut announcements reached levels not seen in that month for more than two decades, and accumulated layoffs have made 2025 the worst year for such announcements since 2009. The absence of the Bureau of Labor Statistics’ usual monthly jobs report — delayed by the government shutdown — left traders without a key data point to gauge whether the labor market is cooling enough to support a Fed easing next month.
Corporate news after the close produced mixed reactions. Tesla shareholders backed CEO Elon Musk’s controversial, milestone-based compensation package with about 75% support, a vote that would enlarge his potential ownership if tranches vest. Take-Two’s shares plunged after management pushed Grand Theft Auto VI’s release to November 2026, while Airbnb, Affirm and others reported results that beat or missed Street expectations and moved their stocks materially in after-hours trading.
Analysis & implications
Market concentration raises systemic sensitivity: when a few megacaps account for a large share of index returns, investor sentiment can swing quickly if those companies encounter growth, margin or regulatory headwinds. That dynamic makes headline index performance a less reliable barometer of broad economic health and increases the role of company-specific catalysts — such as Nvidia earnings — in shaping market direction.
Valuation repricing is an ongoing risk. High forward multiples for AI-related names have been justified by rapid revenue growth expectations, but those assumptions face testing through upcoming earnings reports. If revenues or guidance fall short, multiple compression could accelerate, deepening corrections. Conversely, a strong readout from a benchmark company could restore confidence and trigger a rally among related names.
Macro dynamics complicate the picture. The delayed payrolls release introduces uncertainty about whether the labor market is cooling in a manner that would allow the Fed to cut rates in December. Markets are discounting some probability of easing; if policymakers signal greater caution, equities could come under renewed pressure. At the same time, a resolution to the government shutdown would likely reduce near-term noise and could buoy sentiment.
Geopolitical and legal developments — notably the Supreme Court’s scrutiny of broad tariff authority — add another layer of risk for trade- and manufacturing-sensitive sectors. While legal rulings evolve slowly, the court’s stance could have implications for import costs and corporate planning, which in turn factors into investor expectations for margins and supply-chain stability.
Comparison & data
| Metric | Prior session move | Week-to-date change |
|---|---|---|
| Nasdaq Composite | -1.9% | -2.8% |
| S&P 500 | closed lower | -1.8% |
| Dow Jones Industrial Average | ~ -400 points | -1.4% |
The table shows the recent breadth of declines: the tech-heavy Nasdaq has been the weakest, reflecting AI and semiconductor stock weakness. The S&P 500’s weekly decline of 1.8% indicates broader participation in the pullback, not solely a narrow sell-off. Market breadth measures and sector leadership shifts will be important to monitor to see whether losses remain concentrated or become more widespread.
Reactions & quotes
Market strategists and corporate leaders offered tempered perspectives as investors digested the moves and awaited key upcoming data.
“Corrections with these levels of gains are normal and not something to panic over,”
Louis Navellier, Navellier & Associates
Navellier emphasized that a resolution to the government shutdown and an encouraging Nvidia earnings report could restore momentum into year-end, coupled with the potential for a December Fed cut.
“Shareholder approval reflects support for the company’s long-term plan under clear milestones,”
Tesla, company statement
Tesla’s statement framed the compensation vote as alignment with long-term shareholder value, though observers note governance and control implications from a materially increased potential ownership stake for the CEO.
“Delayed macro data makes market positioning more dependent on earnings and company news,”
Market strategist, independent research firm
Analysts highlighted that in the absence of fresh government payrolls, corporate earnings and scheduled reports — especially from bellwethers — will carry outsized influence on near-term market moves.
Unconfirmed
- Whether the Supreme Court will issue a ruling that materially alters the implementation or legality of proposed tariffs remains pending and could take months to resolve.
- The timing and scope of any Federal Reserve rate cut in December is not finalized; market pricing reflects probabilities but the outcome is uncertain.
- Results of Tesla-related shareholder votes on the separate xAI investment proposal were initially reported as inconclusive; final tallies or implementation details remain to be confirmed.
Bottom line
Friday’s modest futures gains did little to erase a midweek correction driven by valuation concerns in AI and large-cap technology names. The market’s narrow leadership means company-specific news and upcoming earnings — particularly from major AI vendors — will likely determine whether the pullback deepens or stabilizes into a buying opportunity.
Macro uncertainty, highlighted by delayed payroll data and elevated layoff announcements, complicates the outlook. Investors should watch upcoming earnings schedules, Nvidia’s report in the coming weeks, developments on the government shutdown, and any clearer guidance from the Federal Reserve to assess whether year-end sentiment can recover.