Dow, S&P 500, Nasdaq Look to Recover From Tech Rout
Dow, S&P 500, Nasdaq Look to Recover From Tech Rout
U.S. equity markets showed early signs of stabilization on Friday as investors attempted to recover from a sharp technology-led sell-off. Stock futures moved higher, suggesting cautious optimism after recent volatility tied to concerns about artificial intelligence disruption and the scale of spending by major technology firms.
Pre-market indicators pointed to modest gains across the major indexes. S&P 500 futures climbed 0.5%, while Nasdaq 100 futures rose 0.7%, reversing earlier losses seen overnight. Dow Jones Industrial Average futures also turned positive, up 0.4%.
Market participants appeared to be selectively re-entering risk assets as they weighed whether recent declines in technology stocks had gone too far.
The shift in sentiment extended beyond equities. Bitcoin rebounded after briefly touching a 16-month low, stopping just short of breaking below the closely watched $60,000 level. The cryptocurrency has now erased all gains recorded since the Trump-era rally, prompting debate among analysts about when prices may eventually stabilize.
The recent downturn had ripple effects in related equities. Strategy (MSTR) reported a quarterly loss driven by the sharp decline in bitcoin prices, which initially pressured its stock. However, shares rose nearly 6% before the opening bell after the company’s CEO addressed concerns about debt-servicing risks during the post-earnings call.
Despite the broader attempt at a rebound, pressure remained on parts of the technology sector. Amazon (AMZN) shares fell 8% following its earnings release. The company outlined plans to significantly increase spending in 2026, projecting capital expenditures of at least $200 billion, largely tied to cloud and AI infrastructure. At the same time, its operating income outlook came in below market expectations, adding to investor unease about the return on large-scale AI investments.
Outside of technology, the automotive sector also drew attention. Stellantis (STLA, STLAM.MI) announced it expects to record a charge exceeding €22 billion (approximately $26 billion) as it scales back its electric vehicle strategy. Shares of the Jeep maker dropped more than 20% in both U.S. and Milan trading.
This move added to broader concerns about demand and profitability in the EV market, following a $60 billion reduction in market value this week for Chinese automaker BYD (BYDDF, 1211.HK).
In commodities trading, silver (SI=F) experienced sharp price swings but continued its broader downward trend. Ongoing selling from China weighed on prices ahead of a national holiday, contributing to subdued sentiment in the metals market.
Investors are also monitoring incoming economic data. The highly anticipated January U.S. jobs report, originally expected on Friday, has been postponed until Wednesday of next week. Recent data has raised questions about labor market momentum, with job openings falling to their lowest level since 2020 and layoff announcements increasing sharply.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or trading advice. Market conditions can change rapidly, and readers should conduct their own research or consult a qualified professional before making financial decisions.
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