TLDR
- Dow futures rose while Nasdaq-100 futures fell as much as 1.3% early Thursday.
- Arm Holdings and Qualcomm each lost about 3% after hours on guidance and revenue misses.
- Data center stocks fell worldwide on expected AI rules from a Democratic Congress.
- Brent crude fell to $94 and WTI to $88 as hopes grew for an Iran deal.
- October payrolls are due Friday, and the Fed is expected to raise rates in December.
US stock futures pointed in different directions early Thursday. Dow contracts rose, while Nasdaq contracts fell.
The split showed investors leaning toward defensive, non-tech stocks. It came one day after a post-election rally lifted all three major indexes. Investors had welcomed the end of election uncertainty.
On Wednesday, the Dow Jones Industrial Average jumped 3%, its best session in 19 months. The S&P 500 rose 1.6% and closed at 7,688.62. The Nasdaq Composite gained 1.4%.
Chip Results Weigh on Tech
By 00:55 ET, Nasdaq 100 futures had fallen 1.3% to 28,183.75 points. S&P 500 futures slipped 0.35% to 7,693.50. Dow futures rose 0.2% to 53,623.
Later in the morning, the moves had narrowed. Dow futures were up 0.4%, S&P 500 futures were down 0.1%, and Nasdaq-100 futures were down 0.7%.
Arm Holdings, a British chip designer, fell nearly 3% in after-hours trading. The stock had already dropped 5% in the regular session. Investors reacted to the company’s outlook.
Arm beat estimates for the September quarter. Its revenue and profit guidance for the current quarter fell short of expectations.
Qualcomm also lost about 3% after hours. Its handset revenue missed expectations for the September quarter.
The company warned that costs are rising across the chipmaking supply chain. It still reported an earnings beat. Investors focused on the warning.
Chipmakers in Asia posted deep losses as well. Selling in AI shares was heaviest in Japan and South Korea.
Data center stocks fell around the world. Democrats are expected to seek tighter rules on artificial intelligence and data centers. Doubts over the AI trade had already pushed tech lower through October.
Oil Eases and Jobs Data Looms
Brent crude fell to $94 a barrel, and US benchmark WTI dropped to $88. Treasury yields also declined. The moves gave stocks some support.
Oil fell on hopes that President Donald Trump will seek a deal with Iran. Vice President JD Vance wrote on X, “The reason we lost [the midterm elections] is the war.”
Democrats won strong majorities in both chambers of Congress on Tuesday. Voters largely rejected Republicans over inflation and the war with Iran. Democrats are expected to focus on the cost of living and tariffs.
A Democratic Congress still has to work with a Republican White House. Trump had signaled he would veto Democrat-backed bills. He told the New York Times he would accept the election results.
Weekly jobless claims and a Challenger, Gray & Christmas report on job cuts are due Thursday. They will show whether layoffs picked up in October.
October nonfarm payrolls follow on Friday. The Federal Reserve is expected to raise interest rates again in December.
Parker-Hannifin, Southern Company, Duke Energy, Airbnb and Lumentum report earnings Thursday.
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