Nasdaq futures dip as Nvidia tumult keeps investors on edge

On Friday morning, tech-focused Nasdaq 100 index futures fell slightly as concerns over the AI sector persisted following Nvidia's internal turmoil. Nvidia's shares rebounded 1.8% in premarket trading after a 11% drop this week, ending a streak of weekly losses since October 2012. The controversy surrounding CEO Jensen Huang's resignation due to alleged extramarital affairs, including one potentially linked to a Chinese spy, has raised fears of spillover effects onto the broader AI industry.

The company's financial ties with other AI players may now face increased scrutiny due to leadership change. Sean Peche, founder of Ranmore Fund Management, expressed cautious optimism about AI-related stocks. Meanwhile, investors are eagerly anticipating October's producer price inflation data, which could provide insight into the Federal Reserve's rate hike decision.

The odds of a 50 basis point hike now stand at around 12%, according to the CME FedWatch tool. The tech sector faced a setback after Microsoft's Outlook, Teams, and Copilot services experienced a prolonged outage, causing a 2.6% drop in Microsoft shares. Cerebras, however, led the positive movement by raising its 2026 revenue forecast and signing Microsoft as a customer, resulting in a more than 16% gain.

Despite some strong earnings reports from individual companies, investors remain cautious due to various risks, including geopolitical tensions and the recent drop in oil prices.