Dow futures hint negative open, S&P 500, Nasdaq futures trade higher on Nov 6; Moderna, Brookfield shares in focus

Equity market futures indicate a mixed opening for the benchmark indices on Friday, November 6, as Wall Street investors pinned their bets on a potential rebound and value buying after a bloodbath at the previous market session due the fears of crackdown on AI and tech sector.

Dow Jones futures were down 1% trading around 51,110 points ahead of the opening bell on November 6, indicating a potential for a negative performance as the global crude oil prices rebounded to hit $100 per barrel (bbl) on Friday.

In contrast, the S&P 500 index futures were trading 0.24% higher at 7,400 points ahead of Friday’s market open, while the Nasdaq 100 futures were trading 1.6% higher at around 27,194 points indicating potential for growth after a massive sell-off.

Stocks like Enbridge, Moderna, Brookfield Asset Management, Humana, Honda Motor Co., Vistra Corp., EchoStar Corp., PPL Corp., Plains All American Pipeline, Franklin Templeton, among others set to be in focus of investors as the companies are set to announce their September quarter earnings.

Other AI and chipmaking stocks were trading higher during the pre-market hours, like Micron Technology up 7%, Nvidia up 4%, AMD up nearly 8%, Intel up 5% as investors focused on a bounceback on November 6.

Equity market investors are set to keep a close watch on the geopolitical sentiment, elevated crude oil prices, and any further escalation in West Asia, which can impact market sentiment amid the selling pressure.

The overall momentum in the equity market was weak as the benchmark indices in Asia plummeted due to the spillover impact from Thursday’s Wall Street crash.

Nikkei 225 crashed 7% to hit an intraday low of 56,745.81 points on Friday’s market, KOSPI tumbled 8.7% to hit an intraday low of 4,911.28 points.

On the oil front, Brent crude oil prices witnessed a sharp rebound, surging back to $100 per barrel (bbl) on Friday’s market, with investors focusing on Trump’s latest threat to “destroy” Iran amid the tanker attacks at the Strait of Hormuz.

As of 6:46 pm (IST), the Brent crude oil prices were trading 0.21% higher at $98.5 per bbl in comparison to the previous market close levels.

Wall Street crash

The US benchmark indices crashed on Thursday, November 5, recording their biggest single-day loss since the COVID-19 crash back in 2020 due to the selling pressure in tech and AI stocks as investors steer clear from the sector as Democrats took control of the majority at the House and Senate levels after the US midterm elections.

Dow Jones Industrial Average ended 3.44% lower at 51,523.06 points after the market close on Thursday, in comparison to 53,356.12 points at the previous equity market close, according to MarketWatch data.

The S&P 500 also crashed, closing 4.3% lower at 7,353.73 points after Thursday’s trading session, in comparison to 7,688.62 points at the previous equity market close, as per the exchange data.

The tech-heavy Nasdaq plummeted to end 6.3% lower at 26,629.81 points after the trading session on November 5, in comparison to 28,437.17 points at the previous Wall Street close.