Mixed Futures Amid AI Sell-off and Upcoming Payrolls Report

New York, November 5, 2026 — In early trading on Friday, stock futures displayed a mixed response following a sharp decline in artificial intelligence stocks that pushed the Nasdaq Composite into correction territory. As traders prepared for a significant payrolls report, market dynamics appeared uncertain.

Market Performance Overview

Futures contracts related to the Dow Jones Industrial Average experienced a 1.3% decline. Meanwhile, S&P 500 futures dropped by 0.35%. On a different note, the Nasdaq-100 futures marginally increased by 0.3%, attempting to recover from the substantial losses witnessed in the previous trading session.

Asian Markets React

Asian indices reflected bearish trends, with South Korea’s Kospi suffering a staggering decline of over 6%. Similarly, Japan’s Nikkei 225 fell by 5.9%, entering bear market territory. Other notable losses included Australia’s S&P/ASX 200, which decreased by 0.9%, and Hong Kong’s Hang Seng Index, which saw a 1% decline. The mainland China’s CSI 300 dropped 1.47%.

The Nasdaq’s Severe Decline

These market movements follow a tumultuous day on Wall Street, where all three major indices saw their steepest single-day declines since April 2025. The Nasdaq Composite plunged 5.5%, closing more than 10% beneath its recent peak, establishing itself in correction territory. The broader S&P 500 experienced a 4.4% loss, while the Dow dropped over 1,800 points, or 3.4%.

AI Stock Impact

All eleven sectors within the S&P 500 reported losses, with technology stocks, particularly those involved in the AI sector, facing the harshest impacts. Following the recent electoral victories for Democrats in the House and Senate, concerns rose over a potential slowdown in data center construction, adversely affecting these companies. Noteworthy declines include:

• Micron Technology and Advanced Micro Devices: both decreased by 17%
• CoreWeave: a decline of 10%
• Nvidia: fell by 9%, marking a downturn for 2026, alongside a loss of over $1 trillion in market capitalization among major tech firms.

Weekly Performance Summary

As the week draws to a close, the three major averages are on track for overall losses, with the Nasdaq down 4.4% and the S&P 500 down nearly 3%. The Dow, however, is slightly more resilient, with a modest decline of just 0.5% for the week thus far.

Potential Buying Opportunities

Amid the downturn, some analysts perceive a potential buying opportunity. Victoria Greene, Chief Investment Officer at G Squared Private Wealth, expressed optimism regarding the AI sector, stating, “The AI trade, in my opinion, is not dead here,” and referred to the current market condition as a good discount. She also noted her interest in memory stocks, pointing out discussions from management teams regarding a capacity crunch during the earnings season. “Buying a volatile dip tends to be good as long as we’re still in a non-recessionary period,” she added.

Looking Ahead: Payrolls Report

Traders are now awaiting the release of the October payrolls report, which is expected to show an addition of approximately 59,000 jobs and maintain the unemployment rate at 4.2%.

Correction: An earlier reference incorrectly spelled Victoria Greene’s name; it is now accurately presented.