US stock futures pointed to a sharply lower open on Friday, extending a technology-led selloff that has now persisted for three consecutive sessions and is on track to produce the worst weekly performance for the Nasdaq-100 in more than a month. Contracts on the Nasdaq-100 fell approximately 1.6% in premarket trading, while S&P 500 futures dropped roughly 0.8% and Dow Jones futures declined about 0.6%, as investors weighed a confluence of negative catalysts including TSMC's capex-driven chip sector rout, Alphabet's Gemini delay, Netflix's guidance miss, and Iran's overnight escalation in the Middle East.
The Philadelphia Semiconductor Index, the broadest measure of US chip stock performance, was indicated lower by approximately 4.3% on Friday, following Thursday's session in which the index recorded one of its steeper single-day declines of the year. The VIX, the CBOE's measure of expected 30-day S&P 500 volatility, rose 8.25% to close at 18.11 on Thursday and was indicated higher still in early Friday trading, reflecting increased demand for downside protection across the options market.
The selloff is unfolding against a backdrop of a divergent market in which rotation rather than systemic risk appears to be the dominant dynamic. The Dow Jones Industrial Average has recently touched record territory above 53,000, buoyed by strength in healthcare, financials, and industrials, even as the Nasdaq lags by a widening margin. Healthcare was among Thursday's strongest sectors, propelled by UnitedHealth's better-than-expected results and the FDA's approval of Merck's Lipfendra, a novel cholesterol treatment. Abbott Laboratories surged 10.7% and J.B. Hunt advanced 8% on their own quarterly prints.
Edward Jones strategists described the technology weakness in a note to clients as "a combination of profit-taking after a sharp rally from the March lows and growing scrutiny around whether the current pace of AI-related capital spending can be sustained." The firm noted that the technology sector remains up more than 17% year-to-date despite the recent pullback, suggesting the selling reflects valuation recalibration rather than a fundamental break in the AI investment thesis. "Earnings growth is expected to remain robust in 2026, and there are limited signs that companies are meaningfully slowing AI-related investment," the firm added.
Asian markets reflected the deteriorating sentiment ahead of the US open. South Korea's KOSPI fell, with SK Hynix plunging more than 11% in Seoul in a reversal of the prior session's 8% rally as investors continued to digest volatility following the company's $26.5 billion Nasdaq debut the previous week. Samsung Electronics dropped more than 7%. Japan's Nikkei fell, led by declines in AI-equipment makers Advantest, down more than 6%, Tokyo Electron, off more than 5%, and SoftBank Group, lower by nearly 7%. China's market experienced a reported sharp decline in tech and semiconductor shares, with analysts estimating a ¥4.3 trillion drop in aggregate market value, though some cautioned that figure likely overstates the actual systemic damage.
The 10-year Treasury yield, which had climbed toward 4.56% earlier in the week on inflation concerns tied to the Iran conflict, pulled back modestly Friday as investors rotated into safe-haven assets. Gold futures held near the $4,000 per troy ounce level, reflecting sustained demand for defensive positioning. Oil, by contrast, moved higher as the Strait of Hormuz blockade resumed overnight, pushing WTI crude back toward $80 and adding to inflationary pressure that the Fed will need to factor into its policy deliberations.