Nasdaq eyes lower open after midterms-fueled surge as chip, data center stocks fall
SPY•Nasdaq 100 futures fell 0.78% before the open as Qualcomm dropped 11.2% after missing smartphone chip sales estimates and data center-related stocks declined. Dow futures rose 0.61%, while S&P 500 futures gained 0.1%.
1. Nasdaq futures fall
The Nasdaq was set for a lower open on Thursday as chip and data center-related stocks declined, while broader markets were steady after a rally in the previous session following Democrats' midterm election victory. Qualcomm fell 11.2% in premarket trading after missing Wall Street estimates for fourth-quarter smartphone chip sales amid sluggish demand and declining Apple-related revenue.
2. Data center shares slide
Semiconductor stocks including Nvidia, Marvell Technology and Intel extended losses. Data center operators IREN, Hut 8 and Applied Digital fell more than 4% each, while CoreWeave and Nebius Group lost 3.9% each. Utilities and equipment suppliers exposed to data center growth, including GE Vernova and Constellation Energy, also traded lower; Dell fell 5.3%.
3. Mixed stock moves
At 8:24 a.m. ET, Dow futures were up 0.61%, S&P 500 futures gained 0.1% and Nasdaq 100 futures fell 0.78%. Amazon rose 2.2%, while Meta Platforms and Alphabet gained about 1%; AppLovin jumped 21.6% after beating third-quarter profit estimates. Fair Isaac fell 10% after missing fourth-quarter profit estimates, and Snap dropped 10.2% after missing third-quarter revenue estimates. The October jobs report was due Friday.
