Stock Market Today: Wall Street Steadies After AI Rout — 3 Things That Will Move Markets Friday

Wall Street is trying to steady itself on Friday after the worst tech rout in months — futures were mixed in early trade, with Dow futures slightly lower, S&P 500 futures near flat and Nasdaq futures slightly higher. Thursday's damage is the backdrop: the Nasdaq plunged 2.6% to 26,008.86, the S&P 500 fell 1.2% to 7,664.77 in its worst session since July, while the Dow barely moved, closing at 52,873.60.

Key Facts

• Thursday's close: Nasdaq −2.58% (26,008.86); S&P 500 −1.19% (7,664.77); Dow +0.03% (52,873.60)
• The epicenter: Philadelphia Semiconductor Index −6.7%; AMD −8.1%, Intel −8.0%, Micron −6.3%, Nvidia −4.4%
• Asia Friday: Nikkei −0.85%, Shanghai −1.2%, South Korea's KOSPI −2.05%, Hang Seng +0.49%
• Oil: Brent around $113–114, WTI near $100 — the inflation wildcard behind everything
• Bonds: 10-year Treasury yield around 4.96%, having fallen hard Thursday in the flight to safety
• Friday's data: US flash PMIs 9:45 a.m. ET; final Michigan consumer sentiment 10:00 a.m. ET

What caused Thursday's selloff?

One theme: the AI bill. Meta fell 7% after unveiling a $135–145 billion AI spending path despite beating on revenue; Tesla slid despite an earnings beat after cutting 2026 spending plans; chipmakers were dumped as investors asked when — or whether — the hundreds of billions pouring into AI data centers turn into profit. Yardeni Research's Ed Yardeni called the AI trade a bubble this week, while arguing moderating valuations could still end well for the broader market. Nvidia CEO Jensen Huang, meanwhile, warned CNBC that capital availability is becoming a bottleneck for AI infrastructure build-out.

What will move markets on Friday?

Three things. First, the flash PMI readings — forecasts sit near 55.5 for manufacturing and 58 for services; a services print below 56 would read as a genuine slowdown and pull yields lower. Second, Michigan's final consumer sentiment and its one-year inflation expectations (consensus 4.7%): above 5% revives the harshest Fed scenario. Third, positioning ahead of next Wednesday's Fed decision — rates are at 3.75%–4.00%, a hold is expected, and any hint of a December hike will hit the same tech names that are already on the floor.

Key levels traders are watching

For the S&P 500, technicians flag support at 7,615–7,625, then 7,515–7,525; a close below the first band opens the second. For the Dow, 52,800–52,900 is the resistance zone that capped Thursday's strange resilience. And for Brent, a push through $115 would put the inflation pressure straight back on yields — and on the Fed.

Frequently Asked Questions

Why is the stock market down this week?

AI spending fears. Meta's huge capex plans, Tesla's outlook and a 6.7% semiconductor plunge convinced investors the AI boom's costs are arriving faster than its profits. Oil above $113 added inflation pressure on top.

Did the Dow fall too?

Barely — it actually closed up 0.03% on Thursday at 52,873.60, because its price-weighted blue chips carry far less AI exposure than the Nasdaq. Friday's futures, though, pointed slightly lower for the Dow as the selling mood lingered.

What is the next big event for markets?

The Federal Reserve decision on Wednesday, October 28 (2 p.m. ET). A hold is expected; the statement's tone on a possible December hike is what traders fear most.

Futures and overseas figures are early-session snapshots and change through the day. This article is market information only, not investment advice.