US Stock Futures Pause After Sharp Sell-Off

US stock futures were mostly muted on Friday as investors attempted to catch their breath after a dramatic week of market swings.
The Nasdaq 100 futures slipped by 0.2%, while S&P 500 futures hovered near unchanged levels. Meanwhile, Dow Jones Industrial Average futures ticked up around 0.4%, signaling a modest attempt at stabilization following Thursday’s steep declines.

The sudden reversal in sentiment comes after a tech-led drop that unsettled markets just one day earlier.

Crypto Markets Extend Losses as Risk Appetite Fades

While equity futures showed signs of calming, cryptocurrency markets continued to sell off, reflecting lingering anxiety among risk-sensitive assets.
Bitcoin plunged more than 9%, falling to roughly $84,000, its lowest level in months. This deeper pullback is pushing the world’s largest cryptocurrency toward what could become its worst monthly performance since the 2022 market crash.

Investors appear increasingly cautious amid mounting uncertainty around the AI trade, which has driven a large portion of 2024’s market gains. The recent pullback suggests a broader risk-off tone still influencing sentiment.

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AI Fears Pressure Major Indexes as November Turns Negative

The broader market is also on track for a tough November.
The S&P 500 is heading toward its worst November since 2008, weighed down by fears of a potential AI-driven market bubble. Even stellar earnings from Nvidia (NVDA) earlier in the week did little to reassure traders, despite CEO Jensen Huang’s upbeat outlook.

By Thursday’s close:

• The S&P 500 and Nasdaq Composite were down more than 2% and 3% for the week, respectively, both hitting their lowest levels since September.
• The Dow Jones Industrial Average was also set for a weekly decline of more than 3%, reflecting weakness across multiple sectors.

This week’s swings highlight the market’s fragility as investors reassess whether the rally in artificial intelligence stocks has run too far, too fast.

Mixed Jobs Report Adds to Market Confusion

Thursday’s volatility intensified following the long-awaited release of September’s jobs report.
Hiring numbers significantly exceeded expectations, initially boosting optimism. However, the unemployment rate rose to its highest level in nearly four years, muddying the economic outlook.

The mixed data did little to clarify the Federal Reserve’s next policy move, and most analysts still expect policymakers to hold interest rates steady at their upcoming meeting.

Investors Await Consumer Sentiment Data and Fed Remarks

Markets will get another key data point on Friday when the University of Michigan releases its final November consumer confidence reading. Earlier estimates showed sentiment drifting near a three-year low, reflecting household unease about inflation and economic uncertainty.

Several Federal Reserve officials are also scheduled to speak, potentially offering hints about whether rate cuts once widely expected are slipping further out of reach. Investors will be watching closely for clues on how the Fed views recent softening in economic momentum.

Disclaimer

This article is for informational and educational purposes only and should not be taken as financial advice. Market conditions can change quickly. Always conduct your own research or consult a licensed financial professional before making investment decisions.