Nasdaq Futures Slip Amid Tech Selloff While S&P 500, Dow Edge Higher Ahead Of Crucial Earnings Week: IREN, CRWV, NBIS, MRNA, EWZ In Focus

Technology stocks sold off sharply last week amid growing concerns around artificial intelligence’s sustainability and debt woes.

• President Donald Trump told reporters on Sunday that “there will not be a strike (on Iran) today,” putting to rest fears of re-escalation. 
• Oil prices pulled back from six-month highs overnight.
• The Federal Reserve is also slated to begin its policy meeting on Tuesday, with October’s interest rate decision likely to set the tone for equity and bond markets for the rest of the year.

U.S. stock futures tracked mixed overnight late on Sunday, as last week's sharp selloff in technology stocks weighed on the Nasdaq even as markets brace for crucial earnings updates. 

As of 10:20 p.m. EDT, Dow futures gained 0.22%, and S&P 500 futures were up 0.11%. Nasdaq-100 futures were down 0.02%. 

On Friday, U.S. benchmark indexes closed lower. The Dow Jones Industrial Average shed more than 650 points to end 1.23% lower. The Nasdaq Composite was down 2.1% at close, while the S&P 500 fell 0.52%. 

Index	Move	Close
Dow Jones Industrial Average	-1.23%	52,215.16
S&P 500	-0.52%	7,623.68
Nasdaq Composite	-0.21%	25,955.34

The Nasdaq and S&P 500 clocked two consecutive weeks of declines amid a widespread tech and AI selloff. However, the Dow Jones clocked three back-to-back weeks in the green. 

Key US Market Drivers

Technology stocks sold off sharply last week amid growing concerns about the sustainability of artificial intelligence and debt woes. 

The iShares Semiconductor ETF (SOXX), Direxion Daily Semiconductor Bull 3X Shares (SOXL), and VanEck Semiconductor ETF (SMH) posted three straight weeks in the red but climbed higher in the overnight session late on Sunday. 

Meanwhile, on the geopolitical front, even as relations between the U.S. and Iran remain fraught with challenges, U.S. President Donald Trump told reporters on Sunday that “there will not be a strike (on Iran) today,” easing fears of re-escalation. 

Additionally, the U.S. Central Command said on X that the commander of CENTCOM, Brad Cooper, visited the Strait of Hormuz on Oct. 25, as U.S. forces have helped Gulf partners export more than 1.5 billion barrels of crude oil since summer.

CENTCOM also said it had helped more than 3,000 commercial vessels successfully transit the Strait over the last six months.

"Today, primary transit routes in the Strait of Hormuz remain free and clear of Iranian sea mines thanks to incredible efforts by our people," said Cooper. "We remain intensely focused on keeping commercial traffic flowing as we work with our teammates in the U.S. interagency, Gulf Cooperation Council, and shipping industry."

Oil prices pulled back from six-month highs overnight. Brent crude futures were trading at $114.85 a barrel, down 1.60%, while WTI crude futures traded nearly 2% lower at $101.28 per barrel.

Meanwhile, as election season takes off worldwide, Trump reaffirmed his endorsement of Benjamin Netanyahu in the lead-up to the Israeli elections. “To the people of Israel, to those who haven’t seen it, I am attaching the Endorsement I gave one week ago to your Prime Minister, Bibi Netanyahu,” he said in a post on Truth Social.

In Brazil, leftist President Luiz Inacio Lula da Silva defeated right-wing Senator Flavio Bolsonaro in a surprising turn of events, sending Brazilian stocks lower. 

Markets will now brace for a busy earnings week, with Alphabet Inc. (GOOGL), Microsoft Corporation (MSFT), and Amazon.com Inc. (AMZN) set to report their earnings. Other key companies set to post their latest quarterly results this week include Verizon Communications Inc. (VZ), Visa Inc. (V), Boeing Co. (BA), and Coca-Cola Co. (KO). 

The Federal Reserve is also set to begin its policy meeting on Tuesday, and October’s interest rate decision is likely to set the tone for equity and bond markets for the rest of the year. Markets largely expect the central bank to hold rates steady as the midterm elections approach. 

Trending Tickers To Watch 

CoreWeave Inc. (CRWV): The ceocloud stock fell nearly 3% overnight after billionaire entrepreneur Elon Musk said the sector will see “guppy-level death and consolidation,” adding that his rocket and AI firm SpaceX has no interest in buying a neocloud company.

IREN Limited (IREN) and Nebius Group N.V. (NBIS) stocks also slid nearly 3% on Musk’s comments. 

Moderna Inc. (MRNA): Shares of the vaccine developer sold off overnight following a data leak from its highly anticipated melanoma vaccine trial. 

iShares MSCI Brazil ETF (EWZ): The Brazilian exchange-traded fund plunged more than 18% overnight following election results. 

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) trended higher, while the Invesco QQQ Trust (QQQ) was down at the time of writing. 

Meanwhile, the 10-year U.S. Treasury yield fell below 5% to 4.966%. However, the 30-year Treasury yield was at 5.294%. 

The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.48% amid ‘neutral’ sentiment. 

Asian markets opened mixed on Monday. South Korea's KOSPI, Japan’s Nikkei 225, and China’s SSE Composite were trading lower at the time of writing. However, Australian stocks were in the green at the open. 

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