U.S. Stock futures rebounded modestly early Friday, , following a turbulent session on Thursday that saw Wall Street extend its recent sell-off. The gains were tempered by lingering concerns about the technology sector and a broader risk-off sentiment gripping markets.
Tech Rout Continues to Weigh on Markets
As of early trading, Dow Jones Industrial Average futures were up 27 points, or approximately 0.1%. S&P 500 futures added 0.1%, while Nasdaq 100 futures were largely unchanged. The modest recovery comes after a difficult day for equities, driven largely by anxieties surrounding the performance of technology companies.
Thursday’s decline was particularly acute for the Nasdaq Composite, which fell roughly 1.6%. The sell-off was fueled in part by a sharp drop in Qualcomm shares, which tumbled 8.5% following its earnings report. Software stocks continued to struggle, with the iShares Expanded Tech-Software Sector ETF (IGV) losing another 5%. This sector fund is now down more than 11% this week, marking its largest weekly decline since 2008, as investors grapple with the potential impact of artificial intelligence on the industry.
Amazon Earnings Disappoint, Reddit Surges
The market’s immediate reaction was triggered by Amazon’s earnings report, which revealed earnings per share slightly below analyst expectations. More significantly, the company projected $200 billion in capital expenditures for the current year, a figure that raised concerns among investors about near-term profitability. Amazon shares subsequently sank 11%.
Not all tech news was negative. Reddit experienced a significant boost, jumping more than 3% after reporting an earnings beat, providing strong guidance, and announcing a stock buyback program. This positive performance offered a small counterpoint to the broader negative trend in the tech sector.
Broader Market Weakness and Risk-Off Sentiment
The Dow and S&P 500 each shed 1.2% on Thursday, bringing the S&P 500 into negative territory for 2026. The Dow is currently trading around breakeven for the week, while the S&P 500 and Nasdaq have declined approximately 2% and 4%, respectively. The Nasdaq is on track for its worst week since the tariff-induced market volatility of early April.
The weakness extended beyond equities. Bitcoin experienced a substantial overnight drop, falling 16% and briefly dipping below $61,000. The recent volatility in silver, which has attracted attention from retail investors, also resumed on Thursday, adding to the overall sense of risk aversion.
Looking Ahead: Earnings and Economic Data
Investors are now focused on upcoming earnings reports, including Under Armour’s results, expected before the market open on Friday. However, a key economic data release – the nonfarm payroll report – has been delayed due to the recent federal government shutdown and is now scheduled for release next week, according to the Bureau of Labor Statistics. This delay removes a potentially significant market mover from the immediate horizon.
“There’s been a little bit of nerves,” said FarrCrest Capital Chair Michael Farr on CNBC’s “Closing Bell: Overtime.” “People are really on tenterhooks saying: When is it going to crack? When are they going to go down? How long can this keep up?” This sentiment reflects the underlying anxiety among investors as they navigate a period of heightened market uncertainty and reassess valuations in the face of evolving economic conditions and technological disruptions.
The current market environment underscores the sensitivity of equities to earnings reports and broader economic indicators. The combination of disappointing results from a tech giant like Amazon, coupled with concerns about the future of the software sector, has contributed to a risk-off environment that is likely to persist until there is greater clarity on the trajectory of economic growth and corporate profitability.
