Key facts
- Qualcomm fell 10.1% in premarket trading after missing estimates for fourth-quarter smartphone chip sales.
- Nvidia was down 0.4%, Marvell Technology 2.5% and Intel 1.7% as chip stocks extended losses.
- UBS strategists said about 30% of expected 2028 data center additions are at risk of being affected.
- Fair Isaac dropped 9% and Snap slid 10.1% after missing estimates, while AppLovin jumped 16.4% on a profit beat.
- Brent crude futures were up over 1% after dropping more than 8% on Wednesday.
Nasdaq futures fell on Thursday, November 5, as chip and data center-related stocks stayed under pressure, while S&P 500 contracts were little changed after the index's biggest one-day percentage gain in three months on Wednesday, November 4. At 5:04 a.m. ET, Nasdaq 100 E-minis were down 181 points, or 0.63%, Dow E-minis were up 258 points, or 0.48%, and S&P 500 E-minis were up 0.5 points, or 0.01%.
Qualcomm dropped 10.1% in premarket trading after the chipmaker fell short of Wall Street estimates for fourth-quarter smartphone chip sales, which it attributed to sluggish demand and declining Apple-related revenue. Nvidia was down 0.4%, Marvell Technology 2.5% and Intel 1.7%, extending losses from the previous session.
Data center operators IREN, Hut 8, Applied Digital and Core Scientific fell between 0.3% and 1.3%, while CoreWeave and Nebius Group fell 1.8% and 2.5%. Utilities and equipment suppliers tied to the data center buildout, including GE Vernova and Constellation Energy, also traded lower, and AI server makers Dell and HPE were down about 2% each.
UBS strategists said in a note that data center pauses would slow the buildout into 2028, with about 30% of expected 2028 additions at risk of being affected. They said the slowdown is a negative for semiconductors and AI infrastructure but that much is already priced into chip stocks.
Most large-cap tech stocks built on gains from the previous session, with Amazon.com, Meta Platforms and Alphabet up around 0.5% each. SpaceX and Tesla, both led by Elon Musk, were down over 1% each. Musk spent nearly half a billion dollars backing Republican candidates, including efforts to keep Republicans in control in Texas, the home state of both companies.
Brent crude futures were up over 1% on Thursday after dropping more than 8% on Wednesday. The report said the Federal Reserve raised interest rates in September and that markets are pricing in another increase next month. At least three Fed officials, including Richmond Fed President Thomas Barkin, were slated to speak during the day ahead of an October jobs report due on Friday.
Fair Isaac dropped 9% after missing fourth-quarter profit estimates, Snap slid 10.1% after missing third-quarter revenue estimates, and AppLovin jumped 16.4% after beating third-quarter profit estimates.