Nasdaq futures fall as chip weakness offsets steady S&P 500 after election-driven rally

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Nasdaq futures fall after rally

Highlights

Nasdaq 100 futures fall 0.63% in premarket as semiconductor shares extend losses, with Qualcomm plunging 10.1% on weak chip demand and revenue miss.
UBS strategists warn data center buildout could slow into 2028, putting 30% of expected additions at risk and pressuring GE Vernova, Constellation Energy, Dell, and HPE shares.
S&P 500 E-minis remain flat and Dow E-minis rise 0.48%, supported by election-driven relief, while Fair Isaac drops 9% and AppLovin surges 16.4% on earnings results.

Chip and data center stocks pressure Nasdaq futures

As reported by Reuters, Nasdaq 100 futures are lower in premarket trading as semiconductor shares extend losses and investors reassess the outlook for AI infrastructure growth after the midterm election result.

Qualcomm drops 10.1% after the chipmaker misses Wall Street estimates for fourth-quarter smartphone chip sales, hit by weak demand and lower Apple-related revenue. Nvidia falls 0.4%, Marvell Technology loses 2.5% and Intel slides 1.7%, while data center operators IREN, Hut 8, Applied Digital and Core Scientific decline between 0.3% and 1.3%.

Utilities and equipment suppliers tied to the data center boom, including GE Vernova and Constellation Energy, also trade lower. AI server makers Dell and HPE are down about 2% each, while UBS strategists say data center pauses could slow the pace of buildout into 2028, with around 30% of expected 2028 additions at risk of being affected.

Election relief supports broader market mood

At 5:04 a.m. ET, Dow E-minis are up 258 points, or 0.48%, S&P 500 E-minis add 0.5 points, or 0.01%, and Nasdaq 100 E-minis are down 181 points, or 0.63%. Amazon.com, Meta Platforms and Alphabet each rise about 0.5%, suggesting some large-cap technology names benefit from expectations of a slower AI buildout.

The broader market remains supported after Wednesday's rally, when easing political uncertainty following the Democrats' sweeping victory lifted risk appetite. Some analysts say a divided government in Washington could mean fewer abrupt legislative changes and could also complicate agreement on fiscal spending as the U.S. fiscal picture deteriorates.

Oil also remains in focus after Brent crude drops more than 8% on Wednesday before rebounding more than 1% on Thursday. Investors are watching inflation risks linked to Middle East supply concerns, while at least three Fed officials, including Richmond Fed President Thomas Barkin, are due to speak before the closely watched October jobs report on Friday.

Elsewhere, Fair Isaac falls 9% after missing fourth-quarter profit estimates and Snap drops 10.1% after missing third-quarter revenue expectations. AppLovin jumps 16.4% after the marketing platform beats third-quarter profit estimates, while SpaceX and Tesla each lose more than 1% to extend earlier declines.

In our earlier coverage of the U.S. AI data-center boom, we looked at mounting signs that the buildout is running into hard limits—from higher financing costs and investor unease to construction delays and grid constraints. We noted that a meaningful share of planned projects is being postponed or reconsidered, raising questions about how quickly new computing capacity can realistically come online and at what cost.

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