FX.co ★ US Futures Stabilize After Sharp Reversal

U.S. stock futures stabilized on Friday following a dramatic market reversal the previous day, as continued apprehensions about artificial intelligence influenced investor sentiment. Despite robust job data strengthening the belief that the Federal Reserve will refrain from reducing interest rates in December, market dynamics remained tense. Thursday saw an initial surge in stock prices, fueled by Nvidia's impressive earnings that rejuvenated confidence in AI-related investments. However, later in the session, investor sentiment soured. The Dow Jones Industrial Average decreased by 0.84%, the S&P 500 fell by 1.56%, and the Nasdaq Composite dropped by 2.15%. Major technology companies experienced significant losses, reflecting ongoing concerns about a potential AI sector bubble, with companies like Nvidia, AMD, Palantir, Micron Technology, and Oracle witnessing declines ranging from 3.2% to 10.9%. Meanwhile, delayed employment data from the Bureau of Labor Statistics, anticipated to be the final significant update before the December Federal Open Market Committee meeting, revealed stronger-than-expected job growth in September.