Stock Index Futures Slip as Valuation and Economic Concerns Persist, U.S. Confidence Data on Tap

December S&P 500 E-Mini futures (ESZ25) are down -0.26%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.30% this morning, extending yesterday’s losses as investors remain concerned about weak labor market data and lofty tech valuations.

Investors are now awaiting the release of the University of Michigan’s preliminary reading on U.S. consumer sentiment and remarks from Federal Reserve officials.

In yesterday’s trading session, Wall Street’s major indices ended sharply lower. Most members of the Magnificent Seven stocks retreated, with Tesla (TSLA) and Nvidia (NVDA) dropping over -3%. Also, chip stocks slumped, with Advanced Micro Devices (AMD) sliding over -7% and Qualcomm (QCOM) falling more than -3%. In addition, DoorDash (DASH) plunged over -17% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the food-delivery company reported weaker-than-expected Q3 EPS and issued soft Q4 adjusted EBITDA guidance. On the bullish side, Datadog (DDOG) jumped more than +23% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the software maker posted upbeat Q3 results and raised its full-year guidance.

Data from outplacement firm Challenger, Gray & Christmas released on Thursday showed that U.S. companies announced 153,074 job cuts in October, nearly three times higher than the same month last year and the highest for any October since 2003. Separately, Revelio Labs data showed that the U.S. shed 9,100 nonfarm jobs in October after adding 33,000 in the previous month.

“We are sticking to our view that the Fed will deliver a follow-up 25 basis-point cut in December because restrictive Fed policy can worsen the already fragile employment backdrop,” said Elias Haddad at Brown Brothers Harriman & Co.

Still, a slew of remarks from Fed officials on Thursday regarding inflation left traders uncertain about whether a December rate cut will materialize. Cleveland Fed President Beth Hammack said monetary policy needs to keep putting downward pressure on inflation, which she views as too high and a greater risk than labor market weakness. Also, Fed Governor Michael Barr said policymakers still have work to do in bringing down inflation to the central bank’s 2% target while ensuring the labor market is solid. In addition, Chicago Fed President Austan Goolsbee said a lack of official inflation data during the shutdown makes him cautious about cutting rates. Finally, St. Louis Fed President Alberto Musalem said the central bank needs to maintain downward pressure on inflation, warning that interest rates are nearing a level where that pressure could diminish.

U.S. rate futures have priced in a 66.0% chance of a 25 basis point rate cut and a 34.0% chance of no rate change at the next FOMC meeting in December.

Meanwhile, the longest government shutdown in U.S. history is now in its 38th day. U.S. officials have said they will reduce air traffic by 10% at 40 major airports starting today to ease pressure on air-traffic controllers who remain unpaid due to the shutdown. Economists noted that every week of the shutdown reduces quarterly annualized growth by 0.1 to 0.2 percentage points. Still, several lawmakers have expressed optimism that the shutdown could end this weekend.

In light of the shutdown, the publication of October’s nonfarm payrolls report, average hourly earnings, and unemployment rate, originally set for today, will be delayed.

Still, the University of Michigan’s U.S. Consumer Sentiment Index will be released today. Economists, on average, forecast that the preliminary November figure will stand at 53.0, compared to 53.6 in October.

The Fed’s Consumer Credit report will also be released today. Economists expect the U.S. Consumer Credit to be $10.4 billion in September, compared to the previous figure of $0.4 billion.

In addition, market participants will be looking toward speeches from Fed Vice Chair Philip Jefferson, New York Fed President John Williams, and Fed Governor Stephen Miran.

On the earnings front, notable companies like Constellation Energy (CEG), KKR & Co. (KKR), Enbridge (ENB), and Duke Energy (DUK) are set to report their quarterly figures today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.106%, up +0.32%.

The Euro Stoxx 50 Index is down -0.53% this morning, wrapping up a volatile week on a downbeat note as concerns over lofty tech valuations persisted. Technology stocks underperformed on Friday, while media stocks gained ground. The benchmark index is on track to end the week lower. Data released on Friday showed that Germany’s exports rose more than expected in September, supported by a rebound in trade with the U.S. following the EU-U.S. trade deal reached in the summer. Exports to the U.S. surged 12% on the month, marking the first increase after five consecutive months of declines. Meanwhile, EU industry chief Stephane Sejourne said in an interview published on Friday that the bloc must protect its car industry from Chinese competition, which could include revisiting its 2035 zero-emission target for new cars and vans. In corporate news, ITV (ITV.LN) soared over +15% after confirming that it is in discussions with pay-TV company Sky regarding a potential sale of its media and entertainment division for 1.6 billion pounds ($2.15 billion), including debt. At the same time, Rightmove Plc (RMV.LN) tumbled more than -11% after the U.K.’s largest property portal projected slower profit growth for 2026.

Germany’s Exports and Imports data were released today.

The German September Exports rose +1.4% m/m, stronger than expectations of +0.5% m/m.

The German September Imports rose +3.1% m/m, stronger than expectations of +0.5% m/m.

Asian stock markets today closed in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.25%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.19%.

China’s Shanghai Composite Index closed lower today as weak trade data from the country weighed on sentiment. Semiconductor stocks retreated on Friday. Still, the benchmark index notched a solid weekly gain. Customs data released on Friday showed that China’s exports unexpectedly contracted in October, weighed down by a high comparison base and cooling overseas demand following months of front-loading. Notably, shipments to the U.S. fell 25% in October from a year earlier, marking the seventh consecutive monthly decline. HSBC economists said that Chinese exporters could come under pressure in the coming quarters due to a payback effect from front-loading ahead of U.S. tariffs. The data also followed last week’s trade agreement between the U.S. and China. “The good news is that the recent China-U.S. trade framework gives us some reprieve, which should be a positive driver for trade,” according to HSBC economists. Meanwhile, the Trump administration said on Thursday it would pursue talks with China regarding its dominance in shipbuilding and ocean logistics, while formalizing a one-year suspension of U.S. port fees on China-linked vessels as part of a broader deal to ease trade tensions. In other news, UBS analysts said in a note that foreign institutional investors increased their holdings of Chinese equities in the third quarter, narrowing their underweight from -1.6% to -1.3%. Investors now await China’s October inflation data, scheduled for release over the weekend, for further clues on the economy’s momentum.

The Chinese October Trade Balance stood at $90.07 billion, weaker than expectations of $96.90 billion.

The Chinese October Exports fell -1.1% y/y, weaker than expectations of +3.0% y/y.

The Chinese October Imports rose +1.0% y/y, weaker than expectations of +3.2% y/y.

Japan’s Nikkei 225 Stock Index closed lower today, tracking overnight losses on Wall Street as Tuesday’s tech sell-off resumed amid worries over lofty valuations and ongoing uncertainty surrounding tariffs and U.S. monetary policy. AI-related stocks led the declines on Friday. The benchmark index notched its biggest weekly drop since early April. Government data released on Friday showed that Japan’s annual household spending rose less than expected in September. Notably, consumption and wage trends are among the key indicators the Bank of Japan is monitoring to gauge the timing of its next rate hike. Meanwhile, Reuters reported on Friday that Japan’s Ministry of Finance is considering introducing regular mid-year reviews of its government bond issuance plans, which are currently set annually, to help improve market stability. In other news, data from the Ministry of Finance showed that foreign investors purchased a net 690.1 billion yen worth of Japanese shares in the week ended November 1st, marking the fifth consecutive week of net buying. In corporate news, Kanadevia tumbled over -19% after the environmental equipment supplier reported downbeat financial results. At the same time, Nissan Motor rose more than +4% after posting a return to operating profit in the second quarter. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +5.59% to 35.51.

The Japanese September Household Spending rose +1.8% y/y, weaker than expectations of +2.5% y/y.

Pre-Market U.S. Stock Movers

Chip stocks fell in pre-market trading, with Advanced Micro Devices (AMD) and Marvell Technology (MRVL) sliding over -1%.

Opendoor Technologies (OPEN) tumbled over -23% in pre-market trading after the online homebuying platform posted a wider-than-expected Q3 loss.

Block (XYZ) plunged more than -14% in pre-market trading after the parent of Square and Cash App reported weaker-than-expected Q3 results.

Tesla (TSLA) gained about +0.8% in pre-market trading after its shareholders approved a $1 trillion compensation package for CEO Elon Musk.

Expedia (EXPE) surged over +15% in pre-market trading after the online travel agent posted better-than-expected Q3 results and raised its full-year guidance for revenue and gross bookings.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday - November 7th

Constellation Energy (CEG), KKR & Co. (KKR), Enbridge (ENB), Duke Energy (DUK), Brookfield Infrastructure Partners (BIP), YPF Sociedad Anonima (YPF), Emera Incorporated (EMA), Brookfield Asset Management Reinsurance Partners (BNT), Franklin Resources (BEN), MarketAxesss (MKTX), Essent Group Ltd (ESNT), ViaSat (VSAT), Telephone&Data Systems (TDS), Algonquin Power (AQN), Atmus Filtration Tech (ATMU), Delek Logistics Partners LP (DKL), Delek US Energy (DK), Endeavour Silver (EXK), Hawaiian Electric Industries (HE), Six Flags Entertainment (FUN), ANI Pharma (ANIP), DoubleVerify Holdings (DV), Sunstone Hotel Investors (SHO), The Wendy’s Co (WEN), Sylvamo (SLVM), Perella Weinberg Partners (PWP), Global Partners (GLP), Marcus & Millichap (MMI), Taskus (TASK).