1. Futures Slide
U.S. stock futures edged lower on Friday, pointing to continued weakness after equity markets recorded their steepest decline since Oct. 10.
As of 02:49 ET (07:49 GMT), Dow futures were down 69 points (0.2%), S&P 500 futures slipped 17 points (0.3%), and Nasdaq 100 futures dropped 104 points (0.4%).
Thursday’s selloff erased the brief lift generated earlier in the week by the end of the U.S. government shutdown. Investors instead were confronted with a new wave of concerns, including doubts about the sustainability of lofty tech valuations. AI-linked giants such as Nvidia and Broadcom retreated sharply, while Oracle has now lost over one-third of its value since peaking in September.
“Stocks saw a heavy downturn as ongoing pressure in tech led investors to abandon hopes for a year-end rally,” analysts at Vital Knowledge wrote.
Uncertainty is also mounting around the Federal Reserve. A divided Fed has left markets unsure whether another rate cut is coming at December’s meeting, made more complicated by the lack of economic data during the record-long shutdown. White House officials have even suggested that delayed October jobs numbers may be partially incomplete when released.
2. Applied Materials Flags Softer China Demand
Applied Materials shares declined in after-hours trading after the company warned that Chinese spending on chip-manufacturing equipment is likely to contract next year due to tougher U.S. export restrictions.
Roughly $110 million worth of shipments were unable to go out during the company’s fiscal fourth quarter because of those controls, though the restrictions were later eased following a meeting between President Donald Trump and China’s President Xi Jinping.
The company also reiterated that expanded U.S. export limits could reduce fiscal 2026 revenue by $600 million.
Still, Applied Materials said rising investment in artificial intelligence should boost demand for its semiconductor equipment in the latter half of next year.
Despite Thursday’s decline, the stock remains up around 36% year-to-date.
3. U.S. Jobless Claims Decline Slightly — Reports
Initial filings for unemployment benefits eased last week, according to state-level data cited by multiple media outlets. However, the decline was modest and not seen as enough to strengthen arguments for a December rate cut.
Haver Analytics estimates claims fell to 227,543 in the week ending Nov. 8, down from 228,899 the previous week, Reuters reported. JPMorgan, Goldman Sachs, and Nationwide had forecast similar numbers. Bloomberg’s own estimate placed claims at about 226,000.
The Department of Labor has not released official weekly claims figures because of the data blackout caused by the 40-plus day government shutdown.
The Fed cut rates by 25 basis points at each of its September and October meetings to support a cooling labor market. With data limited, CME’s FedWatch Tool shows traders see December’s decision as roughly a 50-50 toss-up.
4. Bitcoin Drops Below $100,000
Bitcoin fell through the closely watched $100,000 mark on Friday, extending broader weakness across risk assets as uncertainty over Fed policy and renewed pressure on tech stocks hit sentiment.
The cryptocurrency slid 6.5% to $96,968 by 03:34 ET, after dipping as low as $96,866 earlier in the session. Bitcoin has erased more than $450 billion in market value since early October as once-steady inflows from institutional funds, ETFs, and corporate buyers have thinned.
The token is now on track for its third straight weekly decline.
5. China’s Factory Output Misses Expectations
China’s industrial production grew more slowly than forecast in October, heightening pressure on Beijing to deliver additional measures to support an economy strained by ongoing trade friction with the U.S.
Output rose 4.9% year-over-year, below expectations of 5.5% and sharply lower than September’s 6.5% expansion.
Domestic demand also remains soft. Retail sales climbed 2.9%, slightly beating estimates thanks to Golden Week spending, but still marking the weakest growth rate since August 2022.
Chinese manufacturers continue to struggle with weak consumer demand, as persistent uncertainty has led households and companies to curb spending. Ongoing factory-gate deflation has further weighed on producers despite government pledges to revive growth.
