AI spending concerns push equity futures lower in pre-bell Friday
Broad market exchange-traded funds and US stock futures traded lower in pre-bell activity on Friday as concerns regarding the cost of artificial intelligence investments weighed on technology stocks. The SPDR S&P 500 ETF Trust (SPY) declined by 0.2%, while the Invesco QQQ Trust (QQQ) fell by 0.3%. S&P 500 Index futures dropped by 0.3%, Dow Jones Industrial Average futures slipped by 0.6%, and Nasdaq futures retreated by 0.1% before the start of regular trading.
Broad market exchange-traded funds and US stock futures traded lower in pre-bell activity on Friday as concerns regarding the cost of artificial intelligence investments weighed on technology stocks. The SPDR S&P 500 ETF Trust (SPY) declined by 0.2%, while the Invesco QQQ Trust (QQQ) fell by 0.3%. S&P 500 Index futures dropped by 0.3%, Dow Jones Industrial Average futures slipped by 0.6%, and Nasdaq futures retreated by 0.1% before the start of regular trading.
Economic data releases are scheduled for later in the day, including the S&P Global flash purchasing managers' index for October at 9:45 a.m. ET and the final University of Michigan consumer sentiment report for the same month at 10 a.m. ET. The weekly Baker Hughes oil-and-gas rig count is set to post at 1 p.m. ET.
In technology, the State Street Technology Select Sector SPDR ETF (XLK) retreated by 0.2%, while the iShares US Technology ETF (IYW) rose by 0.2%. The iShares Expanded Tech Sector ETF (IGM) fell by 0.03%. RingCentral (RNG) shares surged 15% after the company reported higher third-quarter financial results and lifted its fiscal 2026 guidance.
Consumer staples saw mixed results, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.4% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) down 0.3%, while the iShares US Consumer Staples ETF (IYK) gained 0.5%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.5%. Deckers Outdoors (DECK) shares dropped 8% after the company cut its fiscal 2027 sales outlook.
Financial sector instruments were mostly lower, with the State Street Financial Select Sector SPDR ETF (XLF) retreating by 0.5%. Direxion Daily Financial Bull 3X Shares (FAS) fell by 1.1%, while Direxion Daily Financial Bear 3X Shares (FAZ) rose by 1.4%. Flagstar Bank (FLG) shares declined 8% following lower-than-expected third-quarter adjusted earnings and revenue.
Healthcare stocks moved in both directions, with the State Street Health Care Select Sector SPDR ETF (XLV) down 0.6% and the iShares US Healthcare ETF (IYH) up 0.4%. Moderna (MRNA) stock fell by 3% after a nearly 18% decline in the prior close, following media reports of a possible data leak concerning its personalized melanoma vaccine developed with Merck (MRK). Merck stock also trended lower.
Industrial funds showed limited movement, with the State Street Industrial Select Sector SPDR ETF (XLI) down 0.4%. Space Exploration Technologies (SPCX) shares rose by 2% amid reports of advanced discussions with major cell tower owners to secure space on 80,000 US cell sites.
Energy stocks were higher, with the iShares US Energy ETF (IYE) gaining 0.2% and the State Street Energy Select Sector SPDR ETF (XLE) up by 0.7%. Eni (E) stock rose more than 2% after reporting higher third-quarter earnings and sales.
Commodity prices mixed, with front-month US West Texas Intermediate crude oil gaining 1.8% to $101.25 per barrel on the New York Mercantile Exchange. Natural gas fell by 2.5% to $2.73 per 1 million British Thermal Units. Gold futures for November retreated by 0.4% to $4,044.00 an ounce on the Comex, while silver futures fell by 2% to $53.89 an ounce.