5 things to know before the stock market opens on Friday

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Here are five important things investors need to know to start their trading day.

Yesterday was a tough day for the stock market. All three major indexes posted their biggest single-day declines in more than a month due to another round of turmoil in artificial intelligence trading. Concerns about economic policy also overshadowed investor excitement over the reopening of the federal government.

The breakdown is as follows:

of Nasdaq Composite Although it fell by about 2.3%, Dow Jones Industrial Average and S&P500 Each fell more than 1.6%. Losses extend to small-cap stocks, russell 2000 It fell 2.8%.disney It pulled the Dow down from its all-time high. Shares of the media giant fell more than 7% after the company reported lower-than-expected quarterly revenue. The stock fell further in pre-market trading today. Tech stocks continued to slump, with the Nasdaq Composite Index suffering its third straight loss. It is the only major index that can end the week in the red. Speaking of high tech, oracle The company is on track to have its worst week of 2025 as Wall Street loses confidence in its plans to build AI. Stocks are on pace for their worst quarter since 2002. Traders also no longer see a rate cut at the Federal Reserve’s December policy meeting, its last policy meeting of 2025, as a safe bet. The probability of a rate cut in federal funds futures is now less than 50%, up from more than 94% a month ago. Stock futures are down this morning, suggesting the market could be in for another tough trade. Follow live market updates here.

Higher-income shoppers are looking for bargains and younger consumers are tightening their wallets, according to recent earnings reports from consumer companies.

There are some notable exceptions. coach Swiss shoemaker On has seen growth across all consumer segments, but a backlash among shoppers could foreshadow a difficult holiday season ahead. Investors will get more insight from next week’s earnings reports, including from some of the biggest retailers. walmart, target, gap and home depot.

Another economic warning sign: New foreclosure starts rose 20% in October from a year earlier, according to data released yesterday. As CNBC’s Diana Orrick points out, the rise could signal cracks in the housing market, which has been notoriously tight due to the pandemic.

boeing Defense workers yesterday voted to approve a new contract, ending the union’s first strike since 1996. The outage, which lasted more than three months, delayed production of Boeing’s F-15 fighter jet.

The agreement includes increased upfront bonuses and a 24% wage increase over five years. Employees rejected the union’s previous proposal, which they said did not address their concerns.

we are also paying attention starbucks A barista strike began yesterday in dozens of cities. The protest coincided with Red Cup Day, which has historically been a major sales event for coffee chains.

At CNBC’s Delivering Alpha conference last night, attendees were given an expert examination of today’s market.

Mary Callahan Erdoes, CEO of JPMorgan Asset & Wealth Management, said AI should be viewed as an opportunity rather than a potential crisis. In fact, Eldees called the idea of ​​an AI bubble a “crazy concept.”

Meanwhile, Cotu Management founder Philippe Laffont was less optimistic about the initial public offering market, calling it “totally broken” and “irreparable.” He noted that there are “very few” IPOs compared to past decades.

It’s been a busy week. Here are our picks for the weekend:

—CNBC’s Sean Conlon, Lillian Rizzo, Jeff Cox, Seema Modi, Gabrielle Fonrouge, Melissa Repko, Amelia Lucas, Diana Orrick, Leslie Josephs, Kate Rogers, Kate Doerr, Jessica Dickler and Yun Li contributed to this report. Josephine Rozzelle edited this version.