The Nasdaq fell 5.5% and entered a correction as AI stocks sold off. Tonight the market waits for the October jobs report and the reaction to results from Airbnb, Cloudflare and DraftKings.
The S&P 500 fell 334.89 points, or 4.4%, to 7,353.73 on Thursday. The Dow fell 1,833.06 points, or 3.4%, to 51,523.06, and the Nasdaq Composite sank 1,421.52 points, or 5.5%, to 24,315.00, according to the AP.
The Nasdaq now sits more than 10% below its recent high, which puts it in correction territory, according to CNBC.
Tonight, the October nonfarm payrolls report comes out at 8:30 a.m. ET, an hour before the US market opens.
Tonight's Watchlist
| Stock | Movement | What to Watch |
|---|
| NVDA | Down 9.26% to $181.60 on Thursday | First session after the Philadelphia Semiconductor Index fell 12.2% |
| AMD | Down 17.26% to $404.40 on Thursday | First session after Thursday's chip and AI selloff |
| ABNB | Down 3.54% to $170.13 on Thursday, up 11% after hours | First regular session after third-quarter earnings and revenue came in above estimates |
| NET | Down 8.28% to $244.51 on Thursday, up 14% after hours | First regular session after fourth-quarter guidance came in above estimates |
| DKNG | Up 1.77% to $23.52 on Thursday, down 22% after hours | First regular session after a third-quarter loss and revenue that missed estimates |
Source: Thursday closes from Nasdaq; after-hours moves and results from CNBC; the Philadelphia Semiconductor Index decline from CNBC.
Tonight's Key Events
The October jobs report and rates
The October employment report is due Friday at 8:30 a.m. ET, according to the Bureau of Labor Statistics schedule. Economists expect 59,000 jobs added and the unemployment rate to hold at 4.2%, according to CNBC.
The market is pricing in about a 70% chance of a 25 basis point rate hike at the Federal Reserve's Dec. 9 meeting, according to the CME FedWatch Tool as cited by CNBC. That makes tonight's data a signal for where rates go next.
Chip stocks after the selloff
AI stocks fell on worries that data center construction may slow, according to the AP. The midterm results also raised the possibility that governments could pause data center construction. Texas Governor-elect Gina Hinojosa said, "We need to stop what we are doing with data centers until we have measures to protect Texans," according to CNBC.
Nvidia (NVDA) fell 9.3% and AMD (AMD) fell 17.3% on Thursday, according to the AP. The selloff continued in Asia on Friday: SK Hynix fell more than 8%, Samsung Electronics fell 7%, TSMC fell 9.6% and SoftBank Group fell 11.6%, according to CNBC.
Airbnb, Cloudflare and DraftKings results
Airbnb (ABNB) reported third-quarter earnings of $3.16 per share, above the $2.85 estimate, and revenue of $4.87 billion, above the $4.75 billion estimate. The shares rose 11% after hours, according to CNBC.
Cloudflare (NET) guided fourth-quarter revenue of $845 million to $846 million and earnings of 43 cents per share, above estimates of $798 million and 38 cents. The shares rose 14% after hours. DraftKings (DKNG) fell 22% after a loss of 94 cents per share, wider than the expected 39-cent loss, and revenue of $1.33 billion, below the $1.40 billion estimate, according to CNBC.
Before the open, Moderna, Humana, Brookfield Asset Management and Charter Communications are scheduled to report, according to the Nasdaq earnings calendar.
Pre-Market Pulse 📊
In CNBC's update at 12:06 a.m. ET on Friday, Dow futures were down 467 points, or 0.91%, S&P 500 futures were little changed and Nasdaq 100 futures were up 1%, according to CNBC.
After hours, Atlassian (TEAM) fell more than 15% on its data center revenue outlook, according to CNBC. In Asia, South Korea halted trading for 20 minutes after the Kospi plunged, and Japan's Nikkei 225 entered a bear market, more than 20% below its June peak, according to CNBC.
Macro Note 📝
The 10-year Treasury yield fell to 4.84% from 4.90%, while Brent crude rose 3.9% to $98.29 a barrel after falling nearly 9% the day before, according to the AP.
Conclusion
Tonight the market tests whether the AI selloff continues. The October jobs report comes at 8:30 a.m. ET, then the 9:30 a.m. ET open brings the first regular-session reaction to Airbnb, Cloudflare and DraftKings.
Chip stocks such as Nvidia and AMD stay in focus after Thursday's sharp drop and the further selling in Asia on Friday.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
What stocks are you watching tonight?
