Nasdaq 100: Pre-Open Drop in Tech Stocks Signals Risk-Off Sentiment in US Market

Nasdaq Futures Sink Before the Bell as Tech Rout Deepens

Stock index futures pointed sharply lower early Friday, with Nasdaq 100 contracts leading the slide as traders continued to unload big tech. The move follows Thursday’s steep sell-off, the worst single-day drop for U.S. equities since early October.

Ahead of the opening bell at 12:31 GMT, Dow futures were down 272 points, or 0.57%. S&P 500 futures lost 0.93%. Nasdaq 100 futures plunged 1.42%—a clear sign that pressure in the tech space isn’t easing.

Tech in Trouble: Are Traders Finally Backing Off the AI Trade?

Pre-market action was ugly across the board. Nvidia gave up another 3% after shedding more than 3% on Thursday. AMD followed suit, off another 3% after a 4% hit in the prior session.

Tesla and Palantir were each down close to 4% before the open. This stretch of weakness puts the Nasdaq Composite on track to snap a seven-week win streak.

The market’s getting jittery about whether AI-fueled valuations are stretched too far. Oracle’s earlier nosedive has raised fresh doubts around the sustainability of cloud spending, particularly given its reliance on OpenAI deals and its thinner cash cushion compared to hyperscalers.

Is This a Reset or Something More?

Some are calling this a healthy shakeout. But when breakout names start breaking down, sentiment usually follows. Traders are staring at broken charts and failed rallies—and they’re not in a rush to buy the dip. The broader market tone feels less like profit-taking and more like positioning for defensive rotation.

Even with the Dow and S&P still up slightly on the week, the Nasdaq is already down nearly 0.6%. Pre-market weakness suggests the selling isn’t done.

Rate Cut Odds Slip—Is the Fed Adding to the Pressure?

Part of the weight on equities is coming from repricing in Fed expectations. Traders are now giving a December rate cut only a 52% chance—down from nearly 63% a day earlier and well below last month’s 95% odds. That change has taken some wind out of growth stocks, which are more sensitive to rate outlooks.

On top of that, the end of the historic government shutdown hasn’t cleared up the data backlog. Some missed reports may never be released, leaving the market with less clarity heading into year-end. That uncertainty makes it harder for the Fed to justify an early pivot—and harder for traders to stay long.

Bottom Line: Sentiment’s Shifting—Fast

Tech bulls are on the back foot heading into the open. With Nasdaq futures sliding and the AI trade under scrutiny, this isn’t just a Friday fade—it’s a sentiment reset. Unless dip buyers step in quickly, the path of least resistance looks lower.

More Information in our Economic Calendar.