Good morning from London where we celebrated Guy Fawkes' centuries-old failure to blow up our parliament, last night. U.S. markets had less success preventing an explosive wipeout yesterday, although there seems to be something of a rebound in Friday's premarket ahead of the jobs report.
Artificial Intelligence panic had knocked 5.5% off the tech-loaded Nasdaq, sending it into correction territory and dragging down the two other major indexes. But bargain hunters buying the dip are sending Nasdaq futures jumping first thing. The S&P 500 is just about in the green, nothing seems to be helping the Dow.
Nvidia, the chipmaker that's the poster child of the AI boom, has recovered almost half the 9.3% wiped off its stock yesterday, which fell below $200 a share for the first time since July 30. AI cybersecurity provider Cloudflare is also among the big morning movers, having bucked the trend after posting earnings after the bell and continuing to build on that today. Check out the other stock leaders and laggards here.
It's not an optimal time for an AI stock to come to market but my colleague Nate Wolf explains why Anthropic's IPO will get done.
I predicted a week of excitement, and likely a few horrors, last Friday and was about right. Expect some more fireworks coming up. We need to get through today's jobs report and then it's Berkshire Hathaway earnings tomorrow, and updates from Applied Materials, Barrick Mining and Constellation Energy, next week.
Have a great day and weekend.
P.S. Feel free to get in touch with any thoughts and comments by sending your feedback to thebarronsdaily@barrons.com
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📈 Here's what's happening in markets today:
Tech rebounds sharply ahead of crucial jobs report to end a volatile week.
Musk ends production of Tesla's disastrous Cybertruck. It's an AI Pivot.
3 Reasons to be optimistic about Nvidia stock after tech rout.
What Cloudflare' post-earnings surge says about AI fears.
Wall Street's fear gauge suggests the wild ride ain't over yet.
Why Micron's valuation now looks ridiculous.
Stock moves that explain today's market.
🤖 The AI trade imploded. What history says comes next.
It was hard to find much that was working on Thursday, when Nasdaq shed 5% in a brutal post-election smackdown, especially of any stock related to the AI trade. Wall Street has to go back to the drawing board for growth targets growth targets not knowing how quickly data centers can be built and what other changes will bring. Read about it here.
🧠 IonQ wants to become the Nvidia of quantum computing
IonQ has become a standout name in quantum computing -- in part because of its outspoken chief executive, but also backed by steady commercial progress. Following the latest earnings report, leadership expects that momentum only to build. Read what the CEO told Barron's in an interview here.
🍾 Anthropic's IPO to make some young people super rich
With the midterms over, the next market megaevent is Anthropic's pending initial public offering, even with the bloom off the rose of the AI trade. According to MindStudio, the IPO will make as many as 1,000 of Anthropic's employees worth $100 million or more. Read about it here.
📲 DraftKings is all-in on prediction markets
DraftKings reported dismal third-quarter earnings, but saw enough strength in its predictions market to go full-steam ahead on the offering. It even lowered its revenue guidance because of increased investment in the firm's prediction market, which was a major focus of CEO Jason Robins' letter to shareholders. Read more here.
📈 Don't miss out on stories from Barron's Investor Circle
Don't lose sleep over GLP-1s. Why ResMed stock is a bargain.
Still bullish on semis? This stock provides a clean way to trade them.
Yes, Alphabet stock got hammered. No, we're not selling.
💰 Why brokerages and banks are caught in the market selloff
Brokerage stocks like Robinhood were also clobbered Thursday. Why? They have benefited from strong activity by individual investors who have been buying and selling stocks and borrowing to trade. Margin debt stood at $1.48 trillion at the end of September, Finra says. With steep stock drops, those accounts close. Read more about financial stocks here.
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🛌 Airbnb is growing again, and even it was surprised
Airbnb's quarterly revenue growth was the fastest in more than three years. And the vacation rental and experiences platform expects faster innovations and more efficient operations as it builds an AI-native Airbnb. It calls AI the best thing to ever happen to it. Read more here.
💬 Quote of the day:
Other headlines moving markets:
A tale of two data center stocks: Akamai stalled and Iren popped
Quantinuum revenue tripled. What it wants is quantum for the masses.
Mattel's struggles continue. Tariff refunds boosted margins.
Cava stock wilts after earnings. Analysts are paring their price targets.
Humana aced key Medicare ratings. Earnings will spotlight other trends.
Why this analyst thinks Anthropic's IPO will get done
Friday's jobs report won't be flashy but it should greenlight a rate hike
IonQ wants to be the Nvidia of quantum. Its latest numbers back the swagger.
Gap and 5 other dividend stocks safe from the AI trade
Telsa stock plunges along with the rest of tech
MP Materials rare earth earnings were rock solid. What's up with the stock.
AI isn't all bad right now. 2 stocks going the other way.
Nvidia's stock is below $200. What history says is the floor.
SpaceX's stock is still falling. It trades at Apple's valuation.
Is the sharp drop in Micron stock a buying opportunity?
Forget the tech rout. This stock is fertile ground for gains.
-- Edited by Liz Moyer, Patrick O'Donnell, and Rupert Steiner