US STOCKS-Nasdaq futures rise after steep AI selloff as chip stocks stabilize

By Shashwat Chauhan and Utkarsh Hathi

Nov 6 (Reuters) - Nasdaq futures climbed on Friday as chip stocks gained ground after a tech-led rout wiped nearly $3 trillion off the market value for S&P 500 companies on fears that Democratic control of the US Congress could lead to tougher AI regulation.

The Nasdaq Composite .IXIC logged its steepest one-day decline in 19 months on Thursday, confirming it had entered correction territory. The index was also headed for a fourth straight weekly fall.

"We view Thursday's selloff as reactionary, not a fundamental reset, driven by a collision of concerns around AI spend, policy and inflation," said Jane Gibbons, equity strategist at Jefferies.

The sharp losses followed Democrats' midterm election victory earlier this week, including in some key data-center states, stoking concerns that AI data-center buildout could slow. Optimism over the sector's rapid growth had propelled stock markets to record highs this year.

Wall Street's fear gauge, the CBOE Volatility Index .VIX, logged its biggest one-day jump in about 19 months on Thursday. It was down slightly on Friday, at 26.70.

At 6:24 a.m. ET, Dow E-minis were down 471 points, or 0.91%, S&P 500 E-minis were up 21.75 points, or 0.29%, and Nasdaq 100 E-minis were up 378.5 points, or 1.41%.

Megacap and growth stocks were mixed. Nvidia NVDA.O added 4.5% in premarket trading, after suffering its worst day since January 2025, when the emergence of low-cost Chinese AI model DeepSeek had rattled Wall Street.

Other chip stocks, including AMD AMD.O, Intel INTC.O, Broadcom AVGO.O and Micron Technology MU.O, were up between 4.6% and 8.2%.

Data-center operators IREN IREN.O and Applied Digital APLD.O, neoclouds CoreWeave CRWV.O and Nebius Group NBIS.O and AI-exposed utilities and equipment suppliers such as GE Vernova GEV.N and Constellation Energy CEG.O all recovered from deep losses in the last session.

Elon Musk-led Tesla TSLA.O and SpaceX SPCX.O were also up 2% and 4%, respectively, after dropping sharply in the last two sessions.

A jump in crude oil prices on Thursday had also pressured equities over concerns of energy-fueled inflation and prospects of higher interest rates by global central banks. Brent crude futures were broadly flat on Friday.

Despite Thursday's jump, oil prices were set for sharp weekly declines, putting the S&P 500 energy index .SPNY on track for a more than 11% weekly drop.

The broader S&P 500 was on pace for its worst weekly showing since March 2025, when concerns regarding the Trump administration's tariff policies had roiled global markets.

Investors will look ahead to an October jobs report due at 8:30 a.m. ET for clues on interest rates, with traders pricing in a more than 65% chance of a hike in December, according to the CME FedWatch Tool.

Among other stock movers, software firm Atlassian TEAM.O dropped 14.1% after reporting first-quarter results. Airbnb ABNB.O climbed 12.2% after the vacation rental platform raised full-year 2026 revenue growth forecast.