Futures linked to major U.S. stock averages slip, following the worst day for equities in more than a month in the preceding session. Applied Materials flags that expenditures on chipmaking gear in China is anticipated to fall next year as its access to the crucial region is limited by U.S. export rules. Media reports say U.S. jobless claims eased last week, while broader risk-off sentiment sends Bitcoin below $100,000.

1. Futures drop

U.S. futures pointed lower on Friday, suggesting an extension to a dip in stock markets after equities slumped to their worst day since October 10.

By 02:49 ET (07:49 GMT), the Dow futures contract had fallen by 69 points, or 0.2%, S&P 500 futures had dropped by 17 points, or 0.3%, and Nasdaq 100 futures had decreased by 104 points, or 0.4%.

The main averages tumbled on Thursday, as a boost from the end of the U.S. government shutdown earlier this week waned. In its place emerged a slew of fresh worries denting investor sentiment, including fears over the sustainability of sky-high tech sector valuations. Artificial intelligence-affiliated darlings, such as Nvidia and Broadcom, sank, with cloud group Oracle in particular having now shed more than one-third of its value since a September spike.

"[S]tocks suffered a steep slump thanks to continued carnage in tech as investors start throwing in the towel on a year-end rally," analysts at Vital Knowledge said in a note.

Concerns also swirled around whether a divided Federal Reserve will ultimately choose to cut interest rates yet again at its upcoming monetary policy meeting in December. The outcome of the gathering has been made even murkier by a dearth of economic data during the record-long federal government shutdown -- and White House officials have hinted that the release of key delayed October jobs figures may be truncated.

2. Applied Materials warns of weaker China spending

Shares of Applied Materials declined in extended hours trading after the company warned that spending on chipmaking gear in China is anticipated to fall next year due to more stringent U.S. export controls.

Around $110 million of goods were not shipped during its fiscal fourth-quarter because of restrictions which were later suspended following a face-to-face summit between U.S. President Donald Trump and Chinese President Xi Jinping last month, Applied Materials said.

The comments come after the firm flagged that its fiscal 2026 revenue faces a $600 million hit from expanded U.S. restrictions on exports of cutting-edge chip equipment to China.

Still, Applied Materials noted that a rise in business expenditures on AI is likely to drive increased sales of its semiconductor gear in the second half of next year.

Despite the after-hours drop, the stock has jumped by about 36% so far in 2025.

3. U.S. jobless claims dipped last week - reports

Applications for U.S. jobless benefits eased last week, according to media reports citing state-level filings, although the drop was not viewed as big enough to bolster the case for a Fed rate cut in December.

By one calculation from Haver Analytics, which was referenced by Reuters, first-time claims for state unemployment benefits fell to a seasonally-adjusted 227,543 in the week ended on November 8. In the prior week, the number stood at 228,899.

The figure was roughly in line with estimates provided by analysts at JPMorgan, Goldman Sachs and Nationwide, Reuters said.

A separate count carried out by Bloomberg News put the claims at about 226,000.

Weekly filings are typically released by the Bureau of Labor Statistics, but these have not been published during the data blackout caused by the more than 40-day shutdown.

The Fed slashed interest rates by 25 basis points at its previous two gatherings in October and September, as part of a bid to support a slowing U.S. labor market. But, partly given the lack of data, it is about a 50-50 toss-up if the central bank will roll out another reduction next month, CME’s FedWatch Tool has found.

4. Bitcoin slumps below $100,000

Bitcoin tumbled below the coveted $100,000 level on Friday, tracking a broader decline in risk-driven markets as sentiment was battered by Fed rate uncertainty and the fresh selloff in tech stocks.

The world’s largest cryptocurrency was on track to fall for a third consecutive week, as once-reliable flows from big investment funds, exchange-trade funds, and corporate treasuries into the digital asset showed indications of drying up.

Bitcoin slid 6.5% to $96,968.6 by 03:34 ET, after having dropped to an intraday low of $96,866.1. Since early October, the token has lost more than $450 billion in value.

5. Chinese factory output falls short of estimates

Chinese factory output grew less than expected in October, potentially heaping new pressure on Beijing to roll out out fresh measures to boost a $19 trillion economy battered by trade tensions with the United States.

Industrial production increased 4.9% year-on-year in October, government data showed on Friday. The print was below expectations of 5.5% and down from a 6.5% rise in the prior month.

Domestic demand has also been tepid. Retail sales for the month rose 2.9%, slightly above expectations, on support from increased consumer spending during the Golden Week holiday. But it was the weakest expansion since August last year.

Chinese producers have been grappling with sluggish consumer spending in recent years, as heightened uncertainty over the world’s second-largest economy has led local businesses and customers alike to pare back expenditures.

This, coupled with persistent deflation in factory gate prices, has weighed heavily on production, even as Beijing has pledged to do more to promote growth.