Nasdaq futures rise as technology stocks recover

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Nasdaq futures rise

Highlights

Nasdaq-100 futures rise 0.75%.
Tech shares rebound after AI selloff.
OpenAI revenue figures raise valuation concerns.

Nasdaq-100 futures rose 0.75%, to 31,202.75, while S&P 500 futures gained 0.36%, to 7,844.50, and Dow Jones futures added 0.06%, to 51,522, according to market data. The gains were driven by a rebound in technology shares following Thursday's selloff, as investors returned to selected AI-related stocks, CNBC reported.

Technology stocks lead the recovery

Technology shares showed signs of stabilizing after Thursday's decline, when selling pressure spread across companies tied to artificial intelligence investment. The Nasdaq Composite lost more than 1%, recording its largest single-session decline since mid-August and a second consecutive loss after reaching record highs earlier in the week.

The Technology Select Sector SPDR Fund gained approximately 1% in early trading. SpaceX shares rose around 4% following an agreement to acquire a nationwide wireless spectrum portfolio, while telecommunications companies AT&T, Verizon, and T-Mobile came under pressure amid concerns about increased competition.

Other technology stocks also recovered. Optical technology company Lumentum gained roughly 5%, while semiconductor equipment manufacturer KLA advanced about 2%. The gains suggested investors were selectively returning to technology stocks rather than abandoning the sector following the previous session's losses.

OpenAI revenue figures unsettle AI valuations

Thursday's selloff followed confirmation that OpenAI had reached approximately $50 billion in annualized revenue at the end of September. That figure was below an earlier widely circulated estimate of $68 billion, which included gross revenue generated through partners rather than revenue attributable solely to OpenAI.

The difference prompted renewed scrutiny of how artificial intelligence companies report revenue and how investors assess their growth. It also sharpened concerns about the substantial debt and equity financing required to support data centers, computing infrastructure, and increasingly expensive AI development.Investors remain divided over whether the latest decline represents a temporary correction or the beginning of a broader reassessment of technology valuations. Friday's futures gains offered some relief but did not erase the uncertainty surrounding the sector's financial outlook.

Market recovery faces a test of investor confidence

Friday's rebound came as major U.S. indexes headed toward a relatively subdued weekly performance. The Dow Jones Industrial Average and Nasdaq Composite were approximately unchanged for the week, while the S&P 500 was positioned for a gain of about 0.6%.

The contrast between the Nasdaq-100 futures gain of 0.75% and the Dow futures increase of just 0.06% underscored the technology sector's role in the recovery. Investors appeared willing to buy selected growth stocks after Thursday's losses, although concerns about AI spending and earnings expectations remained unresolved.

Whether the advance continues will depend on investors' willingness to support elevated technology valuations despite greater scrutiny of revenue and financing requirements. For the broader market, the immediate question is whether buying interest can extend beyond technology shares and produce a more durable recovery.

We have previously highlighted that Treasury yields hold near 5.24% as Iran tensions ease.

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