US stock futures extended their decline on Friday after the major averages posted their worst single-day drop since the tariff-driven market turmoil of April 2025, amid mounting concerns that Democrats could introduce tighter regulations on the artificial intelligence sector. Futures linked to the Dow, S&P 500, and Nasdaq 100 were all down at least 0.5%.
In Thursday’s regular session, the tech-heavy Nasdaq Composite sank 5.5%, while the Dow and S&P 500 fell 3.4% and 4.4%, respectively. The Nasdaq Composite also ended the day more than 10% below its recent peak, officially entering correction territory. All 11 S&P 500 sectors finished in the red, with companies tied to AI infrastructure suffering the largest losses.
Investor sentiment deteriorated on fears that Democratic policy initiatives could slow the pace of data center expansion. Chipmakers and memory-related stocks were among the hardest hit, including Nvidia (-9.3%), AMD (-17.3%), Micron (-17.5%), and SanDisk (-22.3%).
