US Futures Mixed After Rally On Wednesday — MU, TSLA, AAPL, MSFT, APP, NVDA, IREN In Focus

Oil prices rebounded after plunging more than 8% in the previous session, while technology stocks faced renewed pressure over AI regulation concerns.

• Micron and Nvidia faced renewed pressure amid concerns that calls for tighter AI regulation could slow data center expansion and weigh on demand for AI chips and computing capacity.
• Tesla shares fell in premarket trading as questions resurfaced over a potential Tesla-SpaceX merger, with political scrutiny of Elon Musk adding to concerns about regulatory hurdles.
• DraftKings, Novavax, GoPro, Tapestry, Airbnb, and Akamai will report earnings on Thursday, while economic data releases include weekly jobless claims and Friday's October nonfarm payrolls report.

U.S. equity futures were mixed early on Thursday after the previous session's rally, helped by a sharp drop in oil prices and greater clarity following Democrats’ midterm victories.

As of 3.45 a.m. ET, S&P 500 futures fell 0.11%, while Nasdaq-100 futures declined around 1%. Dow Jones Industrial Average futures moved in the opposite direction, gaining 0.5%.

The cautious start followed a strong session on Wednesday, when major U.S. indexes closed higher as technology and semiconductor stocks rebounded. The S&P 500 ended 2% higher on Wednesday, while the Nasdaq-100 advanced 1%. The Dow climbed 3% to its highest level in a year. The small-cap Russell 2000 also added 1.6%.

Oil Extends Slide As Geopolitical Risks Ease

Oil prices rebounded in early Thursday trading after initially extending their losses, as investors weighed whether Republicans’ setbacks in this week's congressional elections could lower the risk of further escalation in the U.S.-Israeli war on Iran.

Brent crude futures rose around 1.05% to $95.61 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.3% to $88.38 as of 3:45 a.m. ET.

The recovery followed a sharp sell-off on Wednesday, when both benchmarks plunged more than 8% to settle at their lowest levels since August 31.

The Tech Radar

Micron Technology (MU): Micron came under pressure in early premarket trading on Thursday, with shares down over 3% as concerns about tighter AI regulation compounded weakness across technology stocks. Democratic Rep. Yassamin Ansari of Arizona called on Wednesday for a pause in advanced AI development until adequate regulations are in place. The prospect of stricter rules has raised concerns that congressional action could slow data center expansion and limit demand for AI computing capacity. 

Tesla (TSLA): A potential Tesla-SpaceX merger is facing fresh questions as political pressure on Elon Musk adds to concerns about regulatory hurdles and the value of any takeover premium. Mark Tepper, CEO of Strategic Wealth Partners, raised doubts about the prospects of such a deal, stating that greater scrutiny of Musk could create challenges for both companies. His comments followed Democrats' victories in both chambers of Congress and the Texas governor's race. Texas is home to major Tesla and SpaceX operations, as well as their planned Terafab chipmaking project. Tesla shares had dropped 3% on Wednesday, taking their weekly losses to nearly 4%, and were down 2.2% in early premarket trading on Thursday. 

Apple (AAPL): Apple crossed the $5-trillion valuation mark on Wednesday as its shares climbed to a 52-week high, supported by optimism around its earnings outlook and stronger device demand. Investors have also responded positively to expectations of improving cost conditions and the company's upbeat revenue forecast. The stock gave up some ground in early premarket trading on Thursday, slipping 0.15% at the time of writing.

Microsoft (MSFT): Microsoft's latest earnings and continued growth in its Azure cloud business helped drive the stock to a 52-week high on Wednesday. Adding to the optimism, Bill Ackman's Pershing Square said in its third-quarter investor letter that Microsoft is well-positioned to benefit from growing AI adoption through Azure, Copilot, and GitHub. The stock was up 0.08% in early premarket trading on Thursday.

Trending Stocks

AppLovin (APP): The stock was among the biggest premarket gainers on Thursday after the advertising technology company reported record third-quarter results on Wednesday. Revenue jumped 55% year over year, while net income rose 72%. The stock had already gained 10% during Wednesday's regular session and climbed around 18% in Thursday’s premarket trading. 

Nvidia (NVDA): Nvidia faced renewed pressure as concerns over tighter AI regulations and possible delays in data center projects weighed on semiconductor stocks. The prospect of stricter rules under the incoming political landscape has raised questions about the pace of AI infrastructure spending. Investors are also debating the sustainability of the sector's rapid expansion, including concerns over circular financing and off-balance-sheet debt used to fund large AI hardware purchases. Nvidia shares were down around 1% in early premarket trading on Thursday. 

IREN (IREN): The stock remained on traders' radar after coming under heavy selling pressure on Wednesday, with shares plunging 11.4% during the regular session. The decline came as cloud and AI stocks faced pressure following Democrats' midterm victory. The company also faced scrutiny after a report linked its business to Microsoft's lower AI capital spending in the previous quarter. IREN shares fell around 1.3% in early premarket trading on Thursday. 

Fastly (FSLY), Advanced Micro Devices (AMD), and Credo Technology (CRDO) were among the other trending tickers on Stocktwits at the time of writing on Thursday.

What Else To Watch On Thursday

Investors will be tracking a fresh batch of corporate earnings, with DraftKings (DKNG), Novavax (NVAX), GoPro (GPRO), Tapestry (TPR), Airbnb (ABNB) and Akamai (AKAM) among the companies scheduled to report on Thursday.

Meanwhile, weekly jobless claims will be in focus on Thursday, ahead of the October nonfarm payrolls report due on Friday.

SPY, QQQ, DIA: Retail Sentiment

Retail sentiment showed mixed trends across major index ETFs over the past 24 hours. Sentiment toward SPDR S&P 500 ETF (SPY), which tracks the S&P 500, improved to ‘bearish’ from ‘extremely bearish,’ while for Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, it remained ‘bearish’. Meanwhile, sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) turned ‘bullish’ from ‘neutral’.

Also read: Anthropic Is ‘Betting Its Entire Existence On Optimism’: Michael Burry Flags Risks After AI Firm’s Updated S-1, Says Won’t Pursue IPO Shares

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