Nasdaq futures rebound as chip stocks stabilize after AI-led selloff

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Nasdaq futures and chip stocks rebound

Highlights

Nasdaq 100 E-minis rise 1.48% and chip stocks such as Nvidia, AMD, and Micron gain up to 8.3% in premarket rebound after Thursday's correction.
Market volatility driven by election results in key data-center states, inflation fears from higher crude prices, and over 65% odds of a December rate hike.
Atlassian plunges 15.6% on earnings, while Airbnb surges 12.1% after lifting its full-year 2026 revenue growth forecast.

Premarket rebound in chip and AI shares

As reported by Reuters, Nasdaq 100 E-minis are up 1.48% at 4:14 a.m. ET, while S&P 500 E-minis gain 0.39% and Dow E-minis fall 0.66%. The move follows Thursday's steep selloff, when the Nasdaq Composite posted its deepest one-day decline in 19 months and confirmed it had entered correction territory.

Nvidia adds 3.6% in premarket trading after suffering its biggest one-day drop since January 2025. Other chip stocks, including AMD, Intel, Broadcom and Micron Technology, are up between 5% and 8.3%, recovering part of the prior session's losses.

Data-center operators IREN and Applied Digital, neocloud companies CoreWeave and Nebius Group, and AI-linked utilities and equipment suppliers such as GE Vernova and Constellation Energy also rebound from deep losses in the previous session. Jane Gibbons, equity strategist at Jefferies, says Thursday's selloff appears reactionary rather than a fundamental reset, driven by combined worries over AI spending, policy and inflation.

Policy and rate concerns drive market outlook

The market volatility follows Democrats' midterm election victory earlier this week, including wins in several key data-center states, which raises concern that AI data-center buildout could slow after helping drive stock indexes to record highs this year. The CBOE Volatility Index, Wall Street's most closely watched fear gauge, recorded its biggest one-day jump in about 19 months on Thursday and is slightly lower on Friday.

Investors are also contending with higher crude oil prices, which add to inflation concerns and sharpen expectations for possible future interest-rate hikes by global central banks. Attention is now turning to the October jobs report due at 8:30 a.m. ET, with traders pricing in more than a 65% chance of a December rate hike, according to the CME FedWatch Tool.

Outside the chip sector, software company Atlassian drops 15.6% after reporting first-quarter results. Airbnb climbs 12.1% after the vacation rental platform raises its full-year 2026 revenue growth forecast.

Our earlier coverage of the S&P 500’s push toward 8,000 explained how the rally was heavily driven by AI-linked megacaps while investors weighed whether strong Q3 earnings could offset headwinds from higher oil prices, elevated Treasury yields, and midterm-election uncertainty. The piece also warned about narrow market breadth and concentration risk, noting that disappointment in a small group of leaders could quickly pressure indexes despite near-record levels.

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