North American Morning Briefing: Nasdaq Futures Surge as Tech Rebounds on Dip-Buying

Stock futures were mixed as an artificial-intelligence selloff paused

following a rout in Asian tech stocks, ahead of crucial jobs data later.

AI stocks regained some ground in premarket trading as investors weighed concerns a Democratic sweep in the midterm elections could slow AI infrastructure investment.

"Financial markets are undergoing an aggressive recalibration of structural AI capex assumptions," Tickmill Group said.

Oil prices were set for a sharp weekly drop, with Brent crude falling below $100 a barrel as traders await Washington's next move on Iran after President Trump's Republican Party suffered major losses in the midterm elections.

For the day ahead, investors have their eyes on October's employment report, expected to show 59,000 nonfarm jobs created last month, up from 29,000.

Stocks to watch

Airbnb raised its outlook after demand picked up in the third quarter. Shares surged over 10% premarket.

DraftKings tumbled premarket after the betting company cut its outlook to reflect the climbing costs of growing its prediction-markets business.

CoreWeave, Iren, Nebius: So are neoclouds, with Iren leading the way with an 18% jump.

GE Vernova, Vertiv, Eaton: Companies that serve up power to data centers also gained.

Nvidia, AMD, Intel, Broadcom: Chipmakers are rebounding premarket after yesterday's tech selloff.

Watch For:

U.S. Employment Report for October; University of Michigan Survey of Consumers - preliminary for November; Canada Labour Force Survey for October; Enbridge 3Q earnings

Today's Top Headlines/Must Reads:

- Major Investors Are Skeptical Anthropic IPO Can Achieve $1.5 Trillion Valuation

- AI Companies Scramble to Navigate a World Hostile to Data Centers

- The Argument for Buying Treasury Bonds Is Still Strong

MARKET WRAPS Forex:

The dollar recovered. The selloff in tech stocks could lead to a broader reassessment of U.S. growth and inflation but it is too soon to call a broad-based dollar decline, ING said.

Bonds:

Treasury yields were little changed on Friday with the initial rally following the midterm elections fading ahead of October payrolls data later in the day.

The Treasury market focus is shifting back to market fundamentals after the U.S. midterm elections, Societe Generale said.

"Stocks and bonds initially rallied on lower oil prices and the removal of a key risk event, but longer-term questions around fiscal policy, Treasury issuance, the debt ceiling, and the pace of AI investment remain."

Energy:

Oil prices fell below $100 a barrel, with investors focused on Washington's next move on Iran after the U.S. midterm elections.

Metals:

Gold prices edged lower in early trading but remained on course for a weekly gain of more than 4%, as investors turned their attention to U.S. payrolls data due later.

Copper

Copper prices fell to their lowest levels since late July as investors worried that a Democratic sweep in the U.S. midterm elections could threaten the rapid expansion of AI infrastructure and lower the risk of import tariffs.

TODAY'S TOP HEADLINES

Major Investors Are Skeptical Anthropic IPO Can Achieve $1.5 Trillion Valuation

Major investors are increasingly skeptical Anthropic's blockbuster initial public offering can proceed at the expected valuation of $1.5 trillion after a deep market selloff tied to the unwinding of artificial-intelligence related bets, according to people familiar with the matter.

Anthropic is aiming to stage the IPO the week before Thanksgiving and has been expected to raise up to $100 billion in an offering that could value the company at around $1.5 trillion.

AI Companies Scramble to Navigate a World Hostile to Data Centers

The dust from the midterms had hardly settled Wednesday when OpenAI leaders began reckoning with an urgent question: would the outcome make it harder to secure the vast amounts of computing power the company needs to keep growing?

During a Q&A with employees, OpenAI Chief Executive Sam Altman fielded questions about data centers and public sentiment on AI, according to people familiar with the matter. A day earlier, a wave of data-center opposition had helped candidates promising to freeze development win statehouses in Texas, Georgia, Ohio and Michigan-all major states for data-center sites.

Cloudflare Stock Surges on Lifted Full-Year Outlook, Third-Quarter Revenue Growth

Cloudflare lifted its full-year guidance as revenue grew substantially in the third quarter, sending shares jumping after hours.

The connectivity cloud company on Thursday upped its projections for revenue this year to around $2.96 billion, above its earlier guidance for revenue between $2.86 billion and $2.87 billion. It forecast adjusted earnings of $1.35 a share, compared with an earlier range of $1.25 to $1.26 a share.

Is it the end of the Cybertruck? Elon Musk announces factory will shift production

Tesla will wind down the production of its Cybertruck at the company's Texas Gigafactory from around the middle of next year, CEO Elon Musk announced in a post on X early Friday.

It is currently unclear whether this means the electric vehicle maker will be entirely phasing out the distinctively shaped pickup truck, as at the moment, the factory based just outside of Austin is the only one known to manufacture components for the car.

The Argument for Buying Treasury Bonds Is Still Strong

Investors looking for a silver lining in Thursday's ugly stock selloff can find it in Treasurys.

As markets consider whether Democrats' sweep to power at the federal and state levels will sharply curtail the artificial-intelligence build-out that has powered stocks, some investors may be kicking themselves for not locking in the yields on offer in Treasurys a few weeks ago.

Hedge Funds Dump Positions and Cut Staff as Selloff Deepens

A market rout in October walloped hedge funds, forcing them to unwind positions at the highest rate in years and cut staff. The pain left many nursing deep losses even before the stock selloff intensified Thursday.

Funds trading everything from artificial intelligence and healthcare stocks to risky corporate debt felt the pain.

Wells Fargo's Top Investment Banker Sees 'Now or Never' Window for Dealmaking

Democrats' widespread victories in the U.S. midterm elections crystallized a view already held by investment bankers and advisors across Wall Street: a window to complete big corporate tie-ups under a slate of friendlier federal regulators has an expiration date.

Companies and the bankers guiding them have long considered changing political winds while evaluating whether they can push big mergers and acquisitions through without meaningful pushback from regulators.

Friday's Jobs Report Won't Be Splashy, but It Should Green Light a Rate Hike

The October jobs report should show a stable labor market, giving the Federal Reserve the go-ahead to raise interest rates next month.

Low layoffs have balanced out tepid hiring trends for most of this year. If that dynamic continued in October, the central bank should have enough cover to deliver the rate increase that markets are increasingly expecting.

What's Next for Texas After the Democratic Sweep

Texas Democrats stunned the world this week-and they are only getting started.

After cycles of overestimating their chances of victory, they completed a total conquest of every statewide seat and control of the statehouse, upending the GOP's spiritual home in a single night.

Democrats Are Hatching a Plan to Reverse Trump's Canada Tariffs

Democrats are eyeing President Trump's trade war with Canada as the first target in a campaign to roll back his administration's tariff agenda, according to the party's senior trade lawmaker in the Senate.

"There is overwhelming support for repealing the tariffs on products from Canada," said Sen. Ron Wyden (D., Ore.), the Ranking Member on the Senate Finance Committee, who added that he was "already talking" with colleagues about legislation to push against Trump's second-term levies after he gains control of the committee in January.

To Cross the Red Sea, Shippers Email Houthi Rebels. Read Their Inbox.

Iran-backed Houthis in Yemen have effectively policed shipping in the Red Sea using an often-overlooked application system for captains seeking transit clearances.

The process: Send the rebels an email.

Federal Judge Temporarily Blocks Construction of Trump's 250-Foot Arch

A federal district judge on Thursday night temporarily blocked construction of a 250-foot arch President Trump plans to build near Arlington National Cemetery in Washington, in the latest legal setback for one of his projects in the nation's capital.

Judge Tanya Chutkan agreed to issue a temporary restraining order to stop the administration from taking any steps over the next two weeks to start work. The order gives Chutkan more time to consider whether to block construction for the duration of litigation over the project.

Write to priscila.barrera@wsj.com

TODAY IN CANADA Earnings:

Algonquin P&U 3Q ATCO Ltd. I 3Q Brookfield AM 3Q CDN Utilities 3Q Canopy Grwth 2Q Cineplex Inc. 3Q Constellation 3Q Docebo Inc. 3Q Doman Bldg 3Q Emera Inc. 3Q Enbridge Inc. 3Q Ensign Energy 3Q Parex Res. 3Q PMET Res. 2Q Pollard Bank 3Q TELUS Corp. 3Q

Economic Indicators (ET):

0830 Oct Labour Force Survey 1000 Oct Ivey Purchasing Managers Index Stocks to Watch:

Alvopetro 3Q Gas, Oil & Condensate Sales $19.3M; 3Q Net Income $8.55M; 3Q Operating Cash Flow $16.1M; 3Q CAPEX $16.1M; Reports 3Q Operating Cash Flow of $16.1 Million

Atrium Mortgage Investment 3Q Basic EPS CAD 0.22; 3Q Net Income CAD 10.5M; 3Q EPS CAD 0.22; Reports 3Q EPS of CAD 0.22

Aura Minerals 3Q Adj EBITDA $236.9M; 3Q Adj EBITDA Beats Estimates

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November 06, 2026 06:14 ET (11:14 GMT)

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