US pre-open: Small gains expected after tech sell-off as data blackout continues
By Benjamin Chiou
Date: Friday 07 Nov 2025
(Sharecast News) - US stock futures were pointing to small gains as Wall Street opens on Friday, as investors hunt for bargains following the previous day's sell-off, which sent indices to their lowest levels in two weeks.
Concerns about stretched valuations in the AI and chip sectors have weighed heavily on market sentiment in recent days, following reports that prominent hedge fund investor Michael Burry has built short positions in companies like Nvidia and Palantir.
Pre-market activity was showing gains of around 0.1% across the Dow, S&P 500 and Nasdaq, after the three benchmarks sank 0.8%, 1.1% and 1.9% on Thursday, respectively, to their lowest since 23 October.
"The broader market has been led lower by a pullback in mega-cap tech, with semiconductors particularly under pressure yesterday," said Joshua Mahony, chief market analyst at Scope Markets.
"Yet futures point to a more positive tone today, and with earnings continuing to support the AI narrative and corporate profitability holding firm, many will question whether this week's weakness represents a dip-buying opportunity rather than the start of a broader reversal."
Meanwhile, with the longest US government shutdown in history now stretching into its sixth week, the data blackout is set to continue in the absence of October's non-farm payrolls report, originally scheduled for Friday.
However, non-governmental consumer confidence numbers from the University of Michigan will be keen focus later on, with the sentiment index expected to have dipped to a six-month low of 53.2 in November from 53.6 the month before.
In equity news, Tesla's shares were rising ahead of the opening bell after the EV maker's shareholders voted to approved a controversial $1trn pay package for founder Elon Musk following months of debate and scrutiny. Some 75% of the votes cast at Thursday's annual general meeting in Austin backed the largest corporate pay package in history.
Under the deal, Musk has been set a series of stretching goals for the next decade, including delivering 20m vehicles, having 1m robot taxis in operation, selling 1m robots and Tesla earning as much as $400bn in core profit.
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