Tonight’s Highlights | U.S. Stock Futures Narrow Losses, Bank Loan Fears Ease
On Friday, U.S. stock index futures trimmed earlier declines in pre-market trading, with Dow futures turning positive.
As of the latest update, Dow Jones futures rose 0.16%, recovering from an earlier drop of over 1%; S&P 500 futures fell 0.03%, and Nasdaq 100 futures dropped 0.25%, down from earlier losses of over 1.3% and 1.6%, respectively.
The previous trading day saw all three major U.S. indices close lower. Two regional banks, Zions Bancorporation and Western Alliance, disclosed fraud-related issues, sparking widespread concerns about the health of bank loans.
Earlier in the day, the S&P 500 Volatility Index (VIX), known as the “fear gauge,” hit 28.99, its highest since April 2025. Spot gold briefly broke $4,380 per ounce, setting a new record high.
Charles Schwab’s chief investment strategist Liz Ann Sonders commented that bank concerns are hitting amid a “speculative bubble” in stocks, as investors chased high-risk names like quantum computing, drones, and tech.
“When speculative bubbles meet broader potential issues, they can collide, amplifying volatility,” she said, noting that most bubbles are in smaller market segments like the Russell 2000.
On Thursday, the U.S. Senate again failed to advance a Republican stopgap funding bill. With federal agencies halting key economic data releases indefinitely, traders face a significant information gap.
Overnight, the U.S. military deployed three B-52 bombers near Venezuela’s coast for a “mission,” part of the Trump administration’s ongoing pressure on President Maduro’s regime.
Brazil’s Workers’ Party issued a statement strongly condemning Trump’s authorization of covert CIA operations in Venezuela, calling it a violation of international law and an unacceptable breach of Venezuelan sovereignty.
European markets were mixed, with Germany’s DAX down 1.53%, the UK’s FTSE 100 down 0.93%, and France’s CAC 40 up 0.01%.
Company News
Jensen Huang: Nvidia’s China high-end chip market share drops from 95% to 0%, U.S. tech ban a “mistake”
Nvidia CEO Jensen Huang said U.S. export controls have barred the company from selling advanced products in mainland China, slashing its high-end chip market share from 95% to 0%. Speaking in New York on October 6, Huang called the U.S. tech ban a “mistake” and said Nvidia will keep pushing to re-enter China, remaining hopeful for policy changes.
OpenAI’s Sora 2 launches on Microsoft Azure AI Foundry
Microsoft announced on October 17 that OpenAI’s next-gen multimodal video model, Sora 2, is now available on Azure AI Foundry (International) in public preview. It can be accessed via the Standard Global API at $0.1 per second.
Oracle says AI cloud margins could hit 35%, secures $65 billion in orders
At Oracle’s AI World conference, co-CEO Clay Magouyrk said a six-year, $60 billion AI infrastructure project could yield 35% margins. In the last 30 days, Oracle signed $65 billion in new cloud infrastructure contracts from seven deals across four clients, excluding OpenAI but including Meta.
Zelenskyy meets U.S. arms firm to boost air defense
Ukrainian President Zelenskyy met with Raytheon, maker of the U.S. Patriot air defense system, during a U.S. visit. They discussed Raytheon’s production capacity, potential U.S.-Ukraine cooperation to strengthen Ukraine’s air defense and long-range strike capabilities, and possibilities for joint production.
Schlumberger Q3 revenue down 2.5%
Schlumberger’s Q3 adjusted EPS was $0.69, beating the $0.66 forecast; revenue was $8.93 billion, down 2.5% year-over-year, slightly above the $8.9 billion expected. The company expects 2025 capital investment of about $2.4 billion. Schlumberger’s stock fell over 1% pre-market.
Morgan Stanley: Flying car industry to hit $300 billion by 2030
Morgan Stanley predicts a boom for flying cars, with a $300 billion market by 2030, growing to $9 trillion by 2050. China could lead as the largest urban low-altitude transport market. Changan, Geely, and XPeng have recently shared progress on their flying car projects.