Key Highlights

  • Invesco QQQ Trust (NASDAQ:QQQ) was down 2.38% in premarket. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) fell 0.98%. iShares Russell 2000 ETF (NYSEARCA:IWM) lost 0.48%, per published market data.
  • Nasdaq-100 futures were down about 2.5% and S&P 500 futures about 1%, with snapshots ranging from 2.1% to 2.65% and 0.94% to 1.12% lower respectively.
  • Technology Select Sector SPDR Fund (NYSEARCA:XLK) was down 3.22% in premarket, while consumer staples ETF XLP rose 2.08% and health care ETF XLV 1.23%. Defensive sectors held up while technology led declines.
  • The VIX was about 18.6, up roughly 8%, and Dow futures were nearly flat, which points to a tech-led rather than market-wide decline. Both readings are premarket snapshots and can change.

A Second Tech-Led Down Day

Friday's premarket picture is a second straight tech-led decline. Nasdaq futures were quoted at 28,779.50, down 2.65%, S&P 500 futures at 7,667.50, down 1.12%, and Dow futures at 52,445, down 0.13%. Russell 2000 futures fell 0.5% to 0.7%, to 2,847.70 on one page. Other pages show S&P 500 futures 0.94% to 1.05% lower and Nasdaq-100 futures 2.1% to 2.52% lower, so the exact levels depend on the time of the snapshot. Invesco QQQ Trust (NASDAQ:QQQ) was down 2.38% in premarket trading, and the flat Dow shows the weakness is concentrated in large technology names. These ranges matter because futures trade nearly around the clock, and each page captured a different minute of the premarket session.

What Is Driving It

Results from Amazon and Intel after Thursday's close set the tone. Intel fell about 25% on a weak Q4 guide and Amazon about 7% on an EPS miss and heavy capex plans. Alphabet had already closed 12.7% lower on Thursday. Because these companies carry large index weights, a drop in them moves Invesco QQQ Trust (NASDAQ:QQQ) more than a broad fund. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down less. Investors also rotated toward defensives. The consumer staples ETF XLP rose 2.08% and the health care ETF XLV 1.23% in premarket, while Technology Select Sector SPDR Fund (NYSEARCA:XLK) fell 3.22%. Rotation of that kind is typical when growth names are sold, though it is not guaranteed to last.

Risks and What to Watch

Futures can reverse by the 9:30 a.m. ET open, so these figures are snapshots and the article should be redone with opening data. The VIX at about 18.6, up roughly 8%, shows only moderate stress, not panic. Other items on the calendar include the Chicago PMI at about 9:45 a.m. ET, Apple on Monday, November 2, and the midterms on Tuesday, November 3. Risks to the market include further guidance cuts from large technology firms, rising energy costs and rate expectations, since December hike odds sit near 80%. A calmer open would limit the damage. Each of those scheduled events could shift sentiment before or after the opening bell.

Where Things Stand

Invesco QQQ Trust (NASDAQ:QQQ) is sliding about 2.4% in premarket because weak results from Amazon and Intel, following Alphabet's drop, hit the largest Nasdaq-100 weights. The broader market is holding up better, with S&P 500 futures down about 1% and Dow futures nearly flat. These are premarket snapshots and can change at 9:30 a.m. ET. The open, the Chicago PMI and Apple results on Monday are the next catalysts. This is not Investment advice. Defensive sectors are holding up, which suggests investors are rotating rather than leaving the market altogether.