U.S. stock futures showed modest gains Friday, attempting a rebound after an underwhelming OpenAI revenue report triggered a significant sell-off in AI-related tech stocks the previous day. Major AI players saw declines, and an Nvidia-backed Australian IPO was withdrawn due to market volatility. Meanwhile, SpaceX’s spectrum acquisition boosted its shares while hurting traditional telecom providers, and oil prices dipped following President Trump’s comments on Iran.
U.S. stock futures showed modest gains early Friday, attempting to rebound after an underwhelming revenue report from artificial intelligence leader OpenAI dampened enthusiasm for the high-flying AI sector. This report triggered significant turmoil in tech stocks on Thursday, leading to a broader market re-evaluation.
S&P 500 futures edged up 0.3%, while Nasdaq 100 futures saw a 0.49% increase. Dow Jones Industrial Average futures advanced 105 points, or 0.2%. These movements come after a mixed close on Thursday night, where S&P 500 futures were up 0.02% and Nasdaq-100 futures added 0.1%, with Dow futures largely flat.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Thursday, Oct. 8, 2026.
Michael Nagle | Bloomberg | Getty Images
The tech sector experienced a significant downturn on Thursday after CNBC confirmed OpenAI's disclosure to investors of $50 billion in annualized revenue at the end of September. This figure fell short of the previously widely reported $68 billion, which, according to a source familiar with the matter, had included gross revenue from partners. The news sparked a sell-off in AI-related stocks.
Major players in the AI space felt the impact, with CoreWeave plummeting over 7%. Oracle, Intel, and Super Micro Computer each dropped approximately 5%, while Advanced Micro Devices slid nearly 4%, and Nvidia shed almost 3%. Kristina Hooper, chief market strategist at Man Group, warned on CNBC's "Closing Bell: Overtime" that "If we have a number of days like this ... we could see a real rout in AI-related names. That could sour investors." Adding to the sector's woes, Nvidia-backed Australian AI data center operator Firmus withdrew its planned mega initial public offering, citing market volatility and unfavorable conditions.
Thursday saw the Nasdaq Composite fall over 1%, its largest one-day loss since mid-August, marking its second consecutive down day after reaching fresh all-time records earlier in the week. The S&P 500 also suffered a 0.5% loss, its second straight day in the red, dragged down by tech's troubles. In contrast, the blue-chip Dow Jones Industrial Average bucked the trend, closing slightly above flat. For the week, both the Dow and Nasdaq Composite are roughly flat, while the S&P 500 is poised for a 0.6% gain.
Outside of AI, SpaceX made headlines as its shares rose almost 3% in extended trading on Thursday following the announcement of a deal to acquire a nationwide spectrum portfolio. This move is expected to bolster Starlink Mobile's capabilities. Conversely, shares of telecom giants AT&T, Verizon, and T-Mobile tumbled, with drops ranging from 6% to almost 7%, as investors expressed concerns about increased competition in the market.
Global markets presented a mixed picture. In Asia on Friday, Japan's Nikkei 225 was little changed after opening lower due to the Wall Street tech sell-off, while mainland China's CSI 300 advanced 0.16%. Australia's S&P/ASX 200 added 0.64%, and Hong Kong's Hang Seng index was up 1.4% in its final hour of trade. South Korean markets were closed for a holiday.
In other market news:
- Airtel Money's London Listing: Airtel Money, the mobile banking division of Airtel Africa, is commencing conditional trading of its shares ahead of its London Stock Exchange admission on October 14. The company has priced 270 million shares at £1.96 ($2.60), valuing it at an estimated £5.3 billion. This IPO is one of London's largest since Wise in 2021, though Airtel Money is not raising new capital, with shares coming from existing minority shareholders like TPG and the Qatar Investment Authority.
- U.S. Treasury Yields Stable: U.S. Treasury yields remained largely stable on Friday, with the benchmark 10-year yield slightly down to 5.227% and the 30-year yield at 5.608%. Both yields hovered near multi-decade highs, reflecting ongoing concerns about persistent inflation and elevated government borrowing. UBP raised its fair-value range for the 10-year yield to 4.75%–5.25%, anticipating gradual Federal Reserve tightening and no rate cuts before the second half of 2027.
- Oil Prices Fall on Trump Comments: Oil prices declined Friday after U.S. President Donald Trump indicated the U.S. would not attack Iran before the midterm elections, easing geopolitical tensions. Brent crude futures for December delivery dropped 0.77% to $103.48 a barrel, while U.S. West Texas Intermediate futures for November fell 0.68% to $90.87 per barrel.
- Individual Investor Sentiment: A recent survey by the American Association of Individual Investors showed a significant shift in sentiment, with optimism toward the six-month outlook for stocks rising to 40.3% (the highest since mid-July) and bearish sentiment dropping to 39.0%.
- After-Hours Movers: Besides telecom stocks, managed care providers saw sharp movements after the Centers for Medicare & Medicaid Services released its 2027 Star Ratings. Humana surged 12% on an improved rating for its largest Medicare Advantage contract, while Alignment Healthcare cratered 23%. Park Aerospace, a manufacturer of composite materials, traded down 1% despite reporting stronger Q2 earnings.
A roadside mobile money kiosk for Airtel Africa Plc in Lusaka, Zambia, on Friday, Feb. 23, 2024.
Bloomberg | Bloomberg | Getty Images
Investors will be closely watching Delta Air Lines earnings reports and October consumer sentiment data, both expected later on Friday.
