Nasdaq, S&P 500, Dow sink as another tech sell-off has stocks on track for brutal week

Crude oil futures began a turnaround rally through Thursday night and into Friday morning as the market stabilized after a negative reaction from traders evaluating the OPEC+ cartel’s decision to hold off on further production changes in the first quarter of 2026.

Futures on Brent crude (BZ=F), the global benchmark, were up roughly 0.4% to trade around $63.60, while futures on the US benchmark West Texas Intermediate crude (CL=F) rallied by more than 0.5% to trade around $59.75.

Prices on oil fell throughout the week after an unexpected announcement that OPEC+ would take a wait-and-see approach to changing its monthly production levels through the first quarter, pausing eight straight months of hikes as an impending oil glut increasingly comes into focus.

The bloc of oil-producing nations had remained steadfast in adding barrels back into the market even as consensus grew that oil would enter a heavy oversupply through 2026, so a switch-up was read by traders as an intensely bearish signal.

Despite the rally, oil is still headed for a steep weekly loss of more than 2% on both benchmarks.

Yahoo Finance’s Emma Ockerman reports:

Read more here.

Big Tech “Magnificent Seven” stocks were headed for steep weekly losses on Friday morning as investors grew increasingly skeptical of whether the sky-high valuations and spending levels that have defined the AI buildout so far are sustainable.

Chipmaking leader Nvidia (NVDA) lost around 3% in the first hour of trading Friday morning, after a Trump administration official said that “there will be no federal bailout for AI” and following comments from CEO Jensen Huang that the US is poised to lose the AI arms race to China. Nvidia is down more than 9.5% over the past five days, on track for its worst week since April.

Shares in Meta (META) and Microsoft (MSFT), which have both disclosed massive spending plans for the year, lost around 2.5% and 0.5%, respectively. They have each lost more than 4% over the past five days.

The Magnificent Seven got its latest shock after the market closed on Thursday, when Tesla (TSLA) shareholders awarded CEO Elon Musk a pay package potentially worth $1 trillion. The EV maker and hardware company lost another 3.5% Friday morning.

Chipmaker Intel (INTC), which is not a Magnificent Seven member but is directly linked to several of the companies, was one of the only spots of green among Big Tech on Friday morning, up roughly 1%. Musk said at the Tesla shareholder meeting on Thursday that Tesla would need to build out a large amount of chipmaking capacity to power its autonomous EVs, and mused that the carmaker could work with Intel on that goal.

Rounding out the group, Alphabet (GOOG) and Amazon (AMZN) are both headed for losses of more than 1%, while Apple (AAPL) is headed for a gain of a bit over 0.2%, bucking the trend.

Chipmakers AMD (AMD) and Broadcom (AVGO) were both down more than 2% on Friday, headed for weekly losses of more than 9%$ and more than 5%, respectively.

US stocks fell at the opening bell as concerns around Big Tech’s sky-high valuations dragged the tech sector down after a week of bearish performance.

The tech-heavy Nasdaq Composite (^IXIC) led the drop-off, falling by roughly 0.8, while the generalist S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) lost around 0.5% and 0.4%, respectively.

Stocks are on track to close a bumpy week in the red, dragged down by persistent worries about an AI bubble as Big Tech valuations run high. After a downturn for the “Magnificent Seven,” the Nasdaq Composite could be headed for its steepest loss since April and Trump’s tariff “Liberation Day.

In focus today will be investors’ reaction to Tesla’s (TSLA) shareholder meeting on Thursday, where Elon Musk was awarded a $1 trillion pay package, and the chief executive discussed several goals that the market will now be looking for execution on. Earnings will be led by the energy sector, with results coming from electric power company Duke Energy Corporation (DUK) and nuclear developer Vistra Corporation.

The Bureau of Labor Statistics was scheduled to release the October jobs report on Friday, but for a second straight month, the data’s publication has been delayed by the government shutdown.

Clues to the health of the economy could come from the University of Michigan’s initial reading of consumer sentiment in November, due Friday morning.

Shares in Tesla (TSLA) fell by over % on Friday morning as investors digested the shareholder vote on Thursday to award Musk a pay package potentially worth $1 trillion and proclamations from the Tesla chief about where he sees Tesla going.

The stock was down roughly 3.5% at the end of Thursday’s trading session, before the results of the vote on Musk’s pay package were publicly shared.

At Tesla’s investor day in Austin, Texas, the Tesla chief said the company will have to build a “gigantic chip fab” and that it may seek to work with Intel (INTC) on those goals.

Musk also announced that the long-awaited new Tesla roadster model will be unveiled on April 1, with production to begin a year later. Additionally, he showed off the capabilities of the company’s humanoid robot, Optimus.

Economic data: October jobs report (expected to be delayed by US government shutdown); University of Michigan sentiment (November preliminary reading); New York Federal Reserve 1-year inflation expectations (October); Consumer credit (September)

Earnings calendar: Constellation Energy (CEG), KKR (KKR), Enbridge (ENB), Duke Energy (DUK), Brookfield Asset Management (BAM), Ubiquiti (UI), Honda Motor (HMC), TELUS Corporation (TU), MarketAxess Holdings (MKTX), Trump Media & Technology Group (DJT), Algonquin Power & Utilities (AQN), Diginex (DGNX), Six Flags Entertainment (FUN), Soho House (SHCO), Wendy’s (WEN)

Here are some of the biggest stories you may have missed overnight and early this morning:

Musk makes big promises on $1 trillion Tesla payday

Tesla shareholders approve Musk’s $1 trillion pay package

Musk: Tesla needs ‘gigantic chip fab’ for AI, could work with Intel

Why OpenAI might not want to go public

Jefferson: Fed should move slowly on rate cuts

Crypto market erases most of 2025’s gains in just weeks

Trump says Americans are paying ‘something’ for tariffs

Block’s stock falls as concerns over Square profit swirl

Fed may soon need to start buying bonds: Williams

Chinese exports unexpectedly slump as US shipments fall 25%

Traders are turning to technical chart clues in the hope that they will shed light on when the latest market sell-off may end.

Doubts around heavy investments in AI and sky-high stock valuations sent the S&P 500 (^GSPC) down to 6,720.32 on Thursday, its lowest level in two weeks. A drop below the 50-day moving average of 6,665 could indicate problems ahead.

Bloomberg News reports:

Read more here.

Shares in Block (XYZ) fell 15% before the bell on Friday. The drop came after the fintech company, which is owned by Jack Dorsey, the founder of Twitter, released its earnings on Thursday, causing concern among investors due to Block’s payment unit, Square, and its profitability.

Reuters reports:

Read more here.

Expedia (EXPE) rose 16% before the bell on Friday after raising its 2025 forecast and beating Wall Street estimates for revenue.

Japanese automaker, Honda (HMC) saw its stock fall almost 2% in premarket trading on Friday after profit for its first fiscal half through September fell 37% from prior year due to President Trump’s tariffs.

DraftKings (DKNG) stock fell 7% before the bell after cutting its full-year sales outlook to $5.9 billion from $6.1 billion.