U.S. stock futures signaled a sharply weaker open on Friday, suggesting that the market downturn from the prior session is far from over.

Tech names remained at the center of the sell-off, with valuation worries dragging chip giants Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) more than 3% lower in pre-market trading. Major growth stocks such as Palantir Technologies (NASDAQ:PLTR) and Tesla (NASDAQ:TSLA) were also under pressure, extending what is shaping up to be a punishing week for the broader tech sector.

“Markets are down across the board as investors fret about cracks in the narrative that’s driven the mother of all tech rallies over the past few years,” said Dan Coatsworth, head of markets at AJ Bell.

He added, “Investors are worried about rich equity valuations and how billions of dollars are being spent on AI just at a time when the jobs market is looking fragile.”

The market’s slide also reflects growing concerns about monetary policy, following cautious commentary from Federal Reserve officials and uncertainty tied to key U.S. economic indicators that may not be published due to the lengthy government shutdown.

According to CME Group’s FedWatch Tool, the likelihood of a quarter-point cut at the December Fed meeting has fallen to 53.2%, down from 66.9% just a week earlier.

Thursday’s session saw stocks fall sharply at the open before accelerating to the downside throughout the day. By the close, all major averages had suffered heavy losses, breaking a two-day stretch of mixed results.
The Nasdaq dropped 536.10 points, or 2.3%, to 22,870.36. The S&P 500 slid 113.43 points, or 1.7%, to 6,737.49, while the Dow sank 797.60 points, or 1.7%, to 47,457.22.

The Dow’s reversal was fueled in part by an abrupt slump in Disney (NYSE:DIS) shares, which plunged 7.8%. The company posted better-than-expected quarterly earnings but missed on revenue, sparking renewed concern about its growth outlook.

High-flying tech names remained under pressure as stretched valuations met a renewed sense of caution. Nvidia—at the center of the AI boom—tumbled alongside Broadcom (AVGO) and Alphabet (GOOGL), weighing heavily on the broader Nasdaq.

Market anxiety also deepened as traders questioned whether essential U.S. economic reports will ever be published. While President Donald Trump signed a short-term funding measure to end the historic shutdown, White House press secretary Karoline Leavitt warned that the October jobs and inflation releases are “likely never being released.”

That uncertainty leaves investors and policymakers “flying blind,” with limited insight into the health of the U.S. economy ahead of the December Fed decision.

Among sectors, computer hardware stocks were some of the hardest hit, with the NYSE Arca Computer Hardware Index tumbling 7%. Semiconductor, networking and software groups also slid sharply.

Beyond tech, weakness spread across the market, dragging down gold miners, financials, and airline stocks as the latest wave of risk aversion rippled through Wall Street.

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