Dow Jones futures retreat after sharp Wall Street sell-off as markets await NFP data

• After major indices recorded their steepest one-day losses since April 2025, US index futures show a mixed picture.
• A 5.5% slide took the technology-heavy Nasdaq into an official correction as concerns grew over stricter AI regulation.
• Thursday's sharp market sell-off was led by AI hardware and semiconductor bellwethers, including Nvidia, AMD and Micron.

A 0.85% fall leaves Dow Jones futures trading at around 51,170 in early European trading on Friday. By contrast, S&P 500 futures edge up 0.06% to around 7,390, while Nasdaq 100 futures gain 0.90% to around 26,990.

The sharpest one-day losses in major US indices since the tariff-related turmoil of April 2025 have left stock futures trading without a clear direction. Wall Street's heavy sell-off reflected growing fears that Democrats could introduce stricter regulation of the artificial intelligence sector.

Thursday's regular trading session saw the Nasdaq Composite lose 5.5%, compared with declines of 4.4% for the S&P 500 and 3.4% for the Dow. Those losses left the technology-heavy Nasdaq more than 10% below its recent high, formally returning it to correction territory.

Fears that Democratic policies could hold back data centre expansion left AI infrastructure companies bearing the heaviest losses. Semiconductor and memory stocks were particularly badly affected, with Nvidia, AMD, Micron and SanDisk among the chipmakers posting steep declines.

Attention now turns to the forthcoming US Nonfarm Payrolls (NFP) report. Traders expect the release to be crucial in determining market expectations for the Federal Reserve's (Fed) December policy decision.