Nasdaq futures slip on chip weakness; S&P 500 holds gains
Published Thu, Nov 5, 2026 · 09:31 PM
[BENGALURU] Nasdaq futures dropped on Thursday (Nov 5) as chip and data centre-related stocks remained under pressure, while S&P 500 contracts extended gains slightly from the last session following the Democrats’ sweeping midterm election victory.
Qualcomm dropped 9.6 per cent in pre-market trading after the chipmaker fell short of Wall Street estimates for fourth-quarter smartphone chip sales on sluggish demand and declining Apple-related revenue.
Broader semiconductor stocks extended losses after Wednesday’s fall, with Nvidia down 0.8 per cent, Marvell Technology off 3.4 per cent and Intel slipping 2 per cent.
Chip stocks, along with companies linked to the artificial intelligence infrastructure build-out, slipped further following the Democrats’ election victory including in some key data centre states, where public opposition to the industry’s rapid expansion has been growing.
“Data centre pauses will slow the pace of buildout into 2028 with around 30 per cent of expected 2028 additions now at risk of being impacted,” UBS strategists said in a note.
“The slowdown is a negative for Semis and AI infrastructure, but a lot is already priced into Semis with valuations nearing multi-year lows.”
Data center operators IREN, Hut 8, and Applied Digital fell between 1.1 and 2.7 per cent. Neoclouds CoreWeave and Nebius Group fell 3 per cent each.
Utilities and equipment suppliers exposed to the data centre boom, including GE Vernova and Constellation Energy , were also trading lower. AI server maker Dell was down 2.9 per cent.
Most large-cap tech stocks meanwhile built on their gains from the last session as a slower AI build-out was seen as helping them.
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Amazon, Meta Platforms and Alphabet were up above 1 per cent.
Elon Musk-led SpaceX and Tesla were down over 1 per cent each, extending losses. Musk spent nearly half a billion dollars backing Republican candidates, including efforts to keep them in control in Texas, the home state of both companies.
At 7.04 am ET, Dow E-minis were up 330 points, or 0.62 per cent, and S&P 500 E-minis were up 15.5 points, or 0.2 per cent. Nasdaq 100 E-minis were down 145.5 points, or 0.51 per cent.
The S&P 500 clocked its biggest one-day percentage gain in three months on Wednesday as the easing political uncertainty boosted risk appetite.
Some analysts said that a divided government in Washington could lead to fewer sharp legislative changes and may even make it harder to agree on fiscal spending, given the US’ deteriorating fiscal picture.
A sharp drop in oil prices in the previous session had also supported the sentiment. Brent crude futures were up over 1 per cent on Thursday after dropping more than 8 per cent on Wednesday.
Crude oil prices have been in focus this year as concerns about supply disruptions from the Middle East conflict have driven sharp swings and stoked inflation worries.
Central banks around the world have acknowledged inflation remains elevated, with the US Federal Reserve even hiking its interest rates in September and markets pricing in another hike next month.
At least three Fed officials, including Richmond Fed president Thomas Barkin are slated to speak throughout the day, leading up to a crucial October jobs report due on Friday.
Among other stocks, credit-scoring firm Fair Isaac dropped 8.5 per cent after missing fourth-quarter profit estimates, while Snapchat owner Snap slid 9 per cent after missing third-quarter revenue estimates.
AppLovin jumped 20 per cent after the marketing platform beat third-quarter profit estimates. REUTERS
