WASHINGTON, 7 November 2025 — U.S. stock futures edged lower on Friday, rounding off a turbulent week for Wall Street as concerns over lofty technology valuations, economic uncertainty, and a lack of key government data weighed on sentiment.
At 7:30 a.m. ET, Dow Jones E-minis fell 120 points, or 0.26%, S&P 500 E-minis slipped 0.27%, and Nasdaq 100 E-minis dropped 0.36%, setting up the main U.S. indexes for their steepest weekly losses in over a month.
The Nasdaq Composite Index (.IXIC) plunged nearly 2% earlier this week, marking its worst weekly performance since March, while the S&P 500 (.SPX) and Dow Jones Industrial Average (.DJI) are both on track for their sharpest declines in four weeks.
“We’re in this period of pretty entrenched volatility,” said Susannah Streeter, money and markets expert at Consultable Insights. “Certainly, off the back of banking bosses warning… amid all of this uncertainty, you are going to see sharp turns in the market.”
Tech Sector Faces Valuation Pressure Amid AI Fatigue
Optimism around artificial intelligence (AI) has fueled record highs for U.S. markets throughout 2025. However, investors are increasingly questioning how quickly AI innovation can translate into sustainable earnings, with some analysts warning of “circular spending” patterns and speculative excess reminiscent of past tech bubbles.
The CBOE Volatility Index (VIX), widely regarded as Wall Street’s “fear gauge”, climbed to its highest level in more than two weeks, underscoring market unease.
Among major movers, Tesla Inc. (NASDAQ:TSLA) traded flat in premarket trading after shareholders approved CEO Elon Musk’s record-breaking compensation package, the largest in corporate history. Intel Corp. (NASDAQ:INTC) gained 0.8% after Musk hinted at potential collaboration, saying it could be “worth having discussions” with the chipmaker.
Sandisk Corp. (NASDAQ:SNDK) rose 4% after posting stronger-than-expected quarterly results, lifting sentiment across the data storage sector. Meanwhile, Block Inc. (NYSE:SQ) sank 15.1% after missing profit forecasts amid rising competition in the digital payments market.
Economic Concerns Deepen as Data Shortages Cloud Fed Outlook
Markets also grappled with a deepening information gap caused by the ongoing U.S. government shutdown, the longest in the nation’s history. The disruption has delayed critical releases, including the non-farm payrolls report for the second straight month, leaving Federal Reserve officials and traders reliant on private sector indicators.
Private-sector data on Thursday suggested rising layoffs in October, contradicting earlier reports of a rebound in employment from ADP Research Institute.
“Key data points that investors rely on to give them some kind of sense of direction to the state of the U.S. economy are just not available,” Streeter added. “The Fed is effectively flying blind before December’s policy meeting.”
The absence of reliable macroeconomic data has fueled division within the Federal Reserve (Fed) over whether to pause or continue interest rate cuts, as inflation and growth signals remain mixed.
Earnings Season Wraps with Strong Corporate Beat Rate
With the third-quarter earnings season nearing completion, 83% of 424 S&P 500 companies that have reported so far have beaten analysts’ expectations, according to LSEG data — the highest outperformance rate since Q2 2021. Typically, only 67% of companies exceed quarterly forecasts.
Among notable gainers, Expedia Group Inc. (NASDAQ:EXPE) surged 15% after raising its full-year revenue guidance and posting above-consensus profits. In contrast, Take-Two Interactive Software (NASDAQ:TTWO) tumbled 6.3% after announcing that the highly anticipated release of Grand Theft Auto VI would be delayed to November 2026.
Source: Reuters
