S&P futures experienced an uptick early Friday morning after a decline on Thursday night, coinciding with a drop in Amazon shares post-earnings and investors taking precautionary measures following a widespread market sell-off. Futures for the Dow Jones Industrial Average increased by 27 points, reflecting a rise of nearly 0.1%. S&P 500 futures increased by 0.1%, whereas Nasdaq 100 futures remained unchanged. Amazon’s stock experienced a decline of 11% following the release of earnings per share that fell marginally short of analyst forecasts, alongside guidance indicating anticipated capital expenditures of $200 billion for the year. Conversely, Reddit experienced an increase of over 3% following the announcement of an earnings beat, robust guidance, and a stock buyback program.
Thursday night’s developments came on the heels of a challenging day, as the market faced renewed pressure from technology stocks. The Nasdaq Composite, characterized by its technology focus, experienced a decline of approximately 1.6%, notably influenced by Qualcomm’s significant post-earnings decrease of 8.5%. Software stocks continued their downward trajectory, with the iShares Expanded Tech-Software Sector ETF losing an additional 5%. The software sector fund has experienced a decline exceeding 11% this week, positioning it for its most significant weekly drop since 2008, driven by escalating apprehensions regarding the potential risks that artificial intelligence presents to the industry.
The Dow and S&P 500 both declined by 1.2% during Thursday’s trading session, resulting in the S&P 500 entering negative territory for 2026, in conjunction with the Nasdaq. The Dow remains approximately unchanged for the week, whereas the S&P 500 and Nasdaq have experienced declines of about 2% and 4%, respectively. The Nasdaq is poised to experience its most significant weekly decline since the tariff-induced market rout observed in early April. “There’s been a little bit of nerves,” stated Michael Farr. “Individuals are indeed in a state of heightened anticipation, expressing: When will it experience a downturn? When will they decline? What is the sustainability of this trend? The stock market experienced a decline, mirroring movements in other asset classes, which indicates a prevailing risk-off sentiment among traders. Bitcoin experienced a decline of 16% overnight, momentarily dropping below the $61,000 mark. The sell-off in silver, a volatile asset that has recently attracted considerable interest from retail investors, resumed on Thursday.
Market participants are poised to scrutinize the forthcoming earnings report from Under Armour, anticipated prior to the market opening on Friday. The nonfarm payroll report, which has garnered significant attention, is now scheduled for release next week rather than Friday, following the resolution of the federal government shutdown, as stated by the Bureau of Labor Statistics.