Wall Street Wobbles Amid Tech Sector Valuation Concerns

U.S. stock futures faced turbulence on Friday following a shaky week on Wall Street, largely due to economic concerns and high valuations in the technology sector.

The main U.S. indexes saw significant declines in the last session, with the tech-centric Nasdaq dropping nearly 2%. This drop followed warnings from Wall Street executives about a potential market correction. While optimism surrounding artificial intelligence has propelled the markets to unprecedented highs this year, worries about the technology’s monetization have recently dampened the enthusiasm for U.S. stocks.

Despite facing these challenges, the market saw some positive movements. Tesla's shares rose 0.7% in premarket trading after shareholders approved a massive pay package for Musk, showing confidence in his vision for the company’s future. Meanwhile, third-quarter earnings showed that 83% of the S&P 500 companies exceeded Wall Street expectations, the largest rate since the second quarter of 2021, showcasing a robust earnings season amidst a tumultuous economic landscape.