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postUS stocks faltered in their rebound bid on Friday, resuming a tech-led sell-off as investors weighed signals on the jobs market and the odds that the AI investment boom will pay off.
The tech-heavy Nasdaq Composite (^IXIC) led the losses, falling around 0.7% in the minutes after the opening bell, following Thursday’s sharp losses for US gauges. The S&P 500 (^GSPC) slid 0.5%, while the Dow Jones Industrial Average (^DJI) lost around 0.4%.
Stocks are on track to close a bumpy week in the red, dragged down by persistent worries about an AI bubble as Big Tech valuations run high. The S&P 500 and the Dow are headed for solid weekly losses. And after sharp slumps for “Magnificent Seven” stalwarts such as Nvidia (NVDA), the Nasdaq Composite is heading for a 2.8% loss for the week — its deepest since April and Trump’s tariff “Liberation Day”.
In the latest tech extravagance, Tesla (TSLA) approved a $1 trillion pay package for CEO Elon Musk on Thursday, setting high targets for growth in the EV maker’s market value. Musk is also being asked to deliver on his promises for its robotaxi and Optimus humanoid robot — the hardware side of the AI boom. Tesla shares traded slightly lower.
Adding to the downbeat mood, October job cuts hit their highest level for the month in more than 20 years, underscoring what’s shaping up to be the worst year for layoffs since 2009.
That private data out Thursday reverberated through Wall Street more than usual, given the current dearth of official updates on the economy. The Bureau of Labor Statistics was scheduled to release the October jobs report on Friday, but for a second straight month, the data’s publication has been delayed by the government shutdown.
Clues to the health of the economy could come from the University of Michigan’s initial reading of consumer sentiment in November, due Friday morning.
In the background, investors are watching for several potential upside catalysts: The end of the prolonged US shutdown, a December interest rate cut, and Nvidia’s upcoming earnings report could help stabilize sentiment and revive risk appetite. But the Supreme Court’s review of the legality of President Trump’s tariff policies adds a layer of uncertainty.
LIVE 11 updates
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Tech sector leads stocks downward as Friday trading begins
US stocks fell at the opening bell as concerns around Big Tech’s sky-high valuations dragged the tech sector down after a week of bearish performance.
The tech-heavy Nasdaq Composite (^IXIC) led the drop-off, falling by roughly 0.8, while the generalist S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) lost around 0.5% and 0.4%, respectively.
Stocks are on track to close a bumpy week in the red, dragged down by persistent worries about an AI bubble as Big Tech valuations run high. After a downturn for the “Magnificent Seven,” the Nasdaq Composite could be headed for its steepest loss since April and Trump’s tariff “Liberation Day.
In focus today will be investors’ reaction to Tesla’s (TSLA) shareholder meeting on Thursday, where Elon Musk was awarded a $1 trillion pay package, and the chief executive discussed several goals that the market will now be looking for execution on. Earnings will be led by the energy sector, with results coming from electric power company Duke Energy Corporation (DUK) and nuclear developer Vistra Corporation.
The Bureau of Labor Statistics was scheduled to release the October jobs report on Friday, but for a second straight month, the data’s publication has been delayed by the government shutdown.
Clues to the health of the economy could come from the University of Michigan’s initial reading of consumer sentiment in November, due Friday morning.
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Tesla stock falls as investors digest Musk pay package decision
Shares in Tesla (TSLA) fell by over % on Friday morning as investors digested the shareholder vote on Thursday to award Musk a pay package potentially worth $1 trillion and proclamations from the Tesla chief about where he sees Tesla going.
The stock was down roughly 3.5% at the end of Thursday’s trading session, before the results of the vote on Musk’s pay package were publicly shared.
At Tesla’s investor day in Austin, Texas, the Tesla chief said the company will have to build a “gigantic chip fab” and that it may seek to work with Intel (INTC) on those goals.
Musk also announced that the long-awaited new Tesla roadster model will be unveiled on April 1, with production to begin a year later. Additionally, he showed off the capabilities of the company’s humanoid robot, Optimus.
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Earnings movers ahead of the market open: Opendoor, Constellation Energy, Block
As corporate earnings continue to roll in, here’s how investors are reacting to fresh quarterly reports this morning:
Opendoor Technologies (OPEN) stock tanked by as much as 20% in premarket trading. On Thursday afternoon, the real estate iBuyer reported its lowest quarterly revenue in about two years and a wider-than-expected profit loss. New CEO Kaz Nejatian tried to assuage investors by presenting a turnaround plan, emphasizing that his goal is “refounding” the company as a software and AI company, but the highly volatile stock swung lower following Opendoor’s earnings call.
Constellation Energy (CEG) stock fell over 5% after the nuclear energy leader missed earnings estimates and narrowed its full-year adjusted operating earnings guidance range by $0.15 on the top and bottom ends.
Block (XYZ) shares declined 12% after the Jack Dorsey-led company missed estimates for revenue and earnings. The profitability of the company’s Square payments unit came under particular scrutiny, as my colleague Jenny McCall wrote about below.
Airbnb (ABNB) stock rose by about 5% as international bookings bolstered revenue growth in the third quarter. The vacation rental company missed earnings estimates but beat on revenue. It also stated that it continues to see “relatively consistent booking behavior” by its guests.
Wendy’s (WEN) stock popped about 10% in premarket trading. While sales dipped in the third quarter, the results were better than feared. Earnings per share of $0.24 topped estimates for $0.20 per share as its international business helped offset declines in consumer spending in the US.
Read more live coverage of corporate earnings
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Why OpenAI might not want to go public
A series of PR missteps and chatter about AI bailout money suggest OpenAI (OPAI.PVT) is safer outside the scrutiny of public reporting, writes Yahoo Finance’s Hamza Shaban.
He reports:
Read more here in the takeaway from today’s Morning Brief.
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Good morning. Here’s what’s happening today.
Economic data: October jobs report (expected to be delayed by US government shutdown); University of Michigan sentiment (November preliminary reading); New York Federal Reserve 1-year inflation expectations (October); Consumer credit (September)
Earnings calendar: Constellation Energy (CEG), KKR (KKR), Enbridge (ENB), Duke Energy (DUK), Brookfield Asset Management (BAM), Ubiquiti (UI), Honda Motor (HMC), TELUS Corporation (TU), MarketAxess Holdings (MKTX), Trump Media & Technology Group (DJT), Algonquin Power & Utilities (AQN), Diginex (DGNX), Six Flags Entertainment (FUN), Soho House (SHCO), Wendy’s (WEN)
Here are some of the biggest stories you may have missed overnight and early this morning:
Musk makes big promises on $1 trillion Tesla payday
Tesla shareholders approve Musk’s $1 trillion pay package
Musk: Tesla needs ‘gigantic chip fab’ for AI, could work with Intel
Why OpenAI might not want to go public
Jefferson: Fed should move slowly on rate cuts
Crypto market erases most of 2025’s gains in just weeks
Trump says Americans are paying ‘something’ for tariffs
Block’s stock falls as concerns over Square profit swirl
Fed may soon need to start buying bonds: Williams
Chinese exports unexpectedly slump as US shipments fall 25%
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Stocks face ‘critical tipping point’ as key thresholds tested
Traders are turning to technical chart clues in the hope that they will shed light on when the latest market sell-off may end.
Doubts around heavy investments in AI and sky-high stock valuations sent the S&P 500 (^GSPC) down to 6,720.32 on Thursday, its lowest level in two weeks. A drop below the 50-day moving average of 6,665 could indicate problems ahead.
Bloomberg News reports:
Read more here.
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Jack Dorsey-led Block’s shares fall amid concerns over Square profitability
Shares in Block (XYZ) fell 15% before the bell on Friday. The drop came after the fintech company, which is owned by Jack Dorsey, the founder of Twitter, released its earnings on Thursday, causing concern among investors due to Block’s payment unit, Square, and its profitability.
Reuters reports:
Read more here.
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Crypto market erases most of 2025’s gains in just weeks
The crypto market has wiped out almost all its rise in value this year, and the overall value of digital assets is now lower than when President Trump took office.
Bloomberg reports:
It took just over a month for cryptocurrencies to erase almost all of this year’s market value gains.
At its Oct. 6 peak, the total market value of all cryptocurrencies touched a record of nearly $4.4 trillion, but a 20% decline since then leaves asset class up a modest 2.5% for the year, according to CoinGecko data.
The downturn that began with the sudden liquidation of about $19 billion in leveraged positions just days after the all-time high shattered confidence, and traders show few signs of betting on a rebound.
That performance is a shock few would have predicted in a year defined by a tighter embrace of digital assets by regulators, global banks and institutional investors.
President Donald Trump’s push to cement the US as the world’s crypto epicenter unleashed a wave of activity and sent bitcoin (BTC-USD) climbing as much as 35%. In a sign of how quickly sentiment has reversed, the market value of digital assets is now lower than when Trump took office.
Read more here.
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Premarket trending tickers: Expedia, Honda and DraftKings
Expedia (EXPE) rose 16% before the bell on Friday after raising its 2025 forecast and beating Wall Street estimates for revenue.
Japanese automaker, Honda (HMC) saw its stock fall almost 2% in premarket trading on Friday after profit for its first fiscal half through September fell 37% from prior year due to President Trump’s tariffs.
DraftKings (DKNG) stock fell 7% before the bell after cutting its full-year sales outlook to $5.9 billion from $6.1 billion.
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Musk: Tesla needs ‘gigantic chip fab’, could work with Intel
Tesla (TSLA) CEO Elon Musk gave investors a hint of the future he plans for the EV maker, fresh after getting his trillion-dollar pay deal approved at its annual shareholder meeting.
Reuters reports:
Musk scored an important victory on Thursday as shareholders approved a $1 trillion pay package over the next decade, endorsing his vision of morphing the EV maker into an AI and robotics juggernaut.
Read more here.
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Asian markets fall, dragged down by tech stock losses
Reuters reports:
Read more here.
