US stock futures showed mixed movements on Friday, November 6, as investors assessed the impact of a major sell-off in artificial intelligence-related companies following the Democratic Party’s victory in the US midterm elections.
The technology sector suffered substantial losses during Thursday’s session, wiping an estimated $2.5 trillion from the Nasdaq Composite’s market capitalisation and triggering declines across global equity markets.
Tesla (NASDAQ:TSLA) and SpaceX (NASDAQ:SPCX) were among the companies experiencing significant share price falls, while investors questioned whether artificial intelligence developer Anthropic (NASDAQ:ANT) could achieve its proposed $1.5 trillion valuation in an upcoming initial public offering.
Attention was also turning towards the latest US employment report, which could influence expectations for the Federal Reserve’s December interest-rate decision.
Meanwhile, oil markets remained volatile as attacks on commercial shipping in the Middle East continued to threaten regional energy supplies.
Nasdaq Futures Recover as Dow Contracts Decline
US equity futures struggled to establish a clear direction following Thursday’s sharp market correction.
At 03:00 ET (08:00 GMT), Nasdaq 100 futures advanced 232 points, equivalent to 0.9%, indicating some recovery in technology-related sentiment.
S&P 500 futures remained close to unchanged, while Dow Jones futures fell 534 points, or approximately 1%.
The mixed performance followed a substantial decline in US equities driven by concerns about the future regulatory environment for artificial intelligence companies.
The Nasdaq Composite lost an estimated $2.5 trillion in market value during Thursday’s session, with semiconductor manufacturers, data centre operators and electricity suppliers experiencing heavy selling.
The decline represented one of the index’s most significant daily losses since the market disruption caused by the COVID-19 pandemic in March 2020.
The broader market also weakened considerably.
The S&P 500 dropped 4.36%, while the Dow Jones Industrial Average declined 3.44%.
An indicator of expected market volatility recorded its largest daily increase since President Donald Trump’s “Liberation Day” tariff announcements in April 2025.
Global Markets Retreat as Investors Reduce Technology Exposure
The sharp decline in US technology stocks spread rapidly to international equity markets.
The MSCI Asia Pacific index recorded its largest daily loss since 2025, while Japanese equities experienced substantial selling pressure.
Taiwan’s principal stock market benchmark entered bear market territory as investors reduced exposure to companies connected with the semiconductor industry.
In South Korea, the scale of the decline triggered a circuit breaker, temporarily suspending trading.
Major semiconductor manufacturers SK Hynix and Samsung Electronics faced pressure as investors reassessed the outlook for artificial intelligence-related demand.
European markets also opened lower, with the STOXX 600 declining as technology companies followed their US and Asian counterparts.
Joe Maher, Markets Economist at Capital Economics, linked the market weakness to increasing uncertainty about the sustainability of AI investment following the change in the US political landscape.
“Concerns about whether the current pace of AI infrastructure development can be sustained have intensified following the political shift in Washington, contributing to another difficult session for technology shares,” Maher said.
He added that it was not yet clear whether the election results would bring the AI-driven stock market rally to an end, although the developments supported Capital Economics’ assessment that the boom could be nearing its final stages.
Tesla and SpaceX Lose Combined $460 Billion in Market Value
Elon Musk’s companies experienced particularly sharp declines during Thursday’s market sell-off.
Electric vehicle manufacturer Tesla (NASDAQ:TSLA) fell 11%, extending its losses for 2026 to approximately 24%.
SpaceX (NASDAQ:SPCX), which completed a major public listing earlier in the year, declined 9%.
According to Bloomberg News calculations, the combined losses reduced the two companies’ market capitalisation by approximately $460 billion.
Musk’s personal wealth also declined substantially.
Bloomberg reported that his estimated net worth fell by $71 billion to $793 billion at one point during the session, although he retained his position as the world’s wealthiest individual.
The share price declines coincided with political changes in Texas, where both companies maintain their headquarters.
Democratic governor-elect Gina Hinojosa has proposed a moratorium on new data centre development in the state.
James Talarico, who secured a Texas Senate seat for the Democratic Party, has criticised Musk’s financial contributions to Republican candidate Ken Paxton.
The election results have increased uncertainty about the regulatory outlook for major technology companies and infrastructure investments in Texas.
Anthropic’s Planned IPO Faces Valuation Questions
The technology market correction has also raised doubts about the potential valuation of Anthropic (NASDAQ:ANT), the developer of the Claude artificial intelligence platform.
The company has reportedly been preparing for a stock market debut during the week before Thanksgiving.
Its proposed initial public offering could raise as much as $100 billion, based on a valuation of approximately $1.5 trillion.
However, The Wall Street Journal reported that three major prospective investors have begun questioning whether the company can achieve that valuation following the recent decline in technology shares.
One investor suggested that Anthropic’s market value could potentially fall to around $1 trillion.
Other investors reportedly want to examine the company’s October financial performance before revising their expectations.
According to the newspaper, a measure of Anthropic’s annualised revenue exceeded $80 billion at the end of October.
The company may also consider reducing the amount of capital raised in the offering.
Some prospective investors have raised the possibility of postponing the IPO until market conditions become more favourable.
The discussions illustrate the potential consequences of the technology sector sell-off for private companies preparing major stock market listings.
US Employment Figures Could Shape December Fed Decision
The latest US employment report is expected to provide another important indication of the direction of financial markets.
Economists forecast that the US economy added 65,000 jobs in October, compared with 29,000 in September.
The unemployment rate is expected to remain at 4.2%.
Stronger employment figures could reinforce expectations that the Federal Reserve will raise interest rates at its December meeting as policymakers seek to contain persistent inflation.
However, the sharp decline in equity markets has complicated the outlook.
Analysts at Deutsche Bank noted that renewed concerns about artificial intelligence have introduced additional uncertainty over the likelihood of another interest-rate increase.
Market expectations for a December rate hike declined following Thursday’s stock market losses.
Investors will therefore assess the employment figures for evidence of continued labour market strength and their potential implications for monetary policy.
Oil Prices Fluctuate as Middle East Shipping Risks Persist
Oil prices remained volatile amid continued attacks on vessels operating in the Middle East.
Brent crude futures rose almost 4% on Thursday, while US West Texas Intermediate gained 2.7%.
The recovery followed a sharp decline on Wednesday, when both benchmarks fell more than 8% to their lowest closing levels since August 31.
The earlier losses reflected expectations that the US midterm election results could encourage renewed diplomatic efforts to resolve the conflict involving the United States, Israel and Iran.
Despite the subsequent rebound, crude prices remained on course for significant weekly declines.
Security concerns continued to affect major shipping routes.
The United Kingdom Maritime Trade Operations (UKMTO) reported at least five vessel incidents since Sunday, with the pace of attacks approaching October’s total of 35 reported incidents.
Iran’s Islamic Revolutionary Guard Corps said two oil tankers and a tugboat caught fire in separate incidents after attempting to travel through unauthorised routes in the Strait of Hormuz.
Saudi Arabia also issued warnings about potential threats near Yanbu, its Red Sea oil export facility, as Iran-aligned Houthi militants in Yemen continued attacks against the kingdom.
Markets Await Economic Signals Following AI-Led Correction
Financial markets face several sources of uncertainty following the sharp decline in technology stocks.
The US midterm election results have raised questions about future regulation of artificial intelligence, while the scale of recent equity losses has prompted investors to reconsider the valuations of major technology companies.
The upcoming employment report could also influence expectations for Federal Reserve policy and the direction of US borrowing costs.
Meanwhile, geopolitical developments in the Middle East remain an important factor for energy prices and inflation expectations.
Investors will be watching whether technology shares recover from Thursday’s losses, whether labour market figures support another interest-rate increase and whether diplomatic developments can reduce the risks affecting global energy supplies.
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