Dow Jones set for tentative rebound but Nasdaq futures flat after Mag-7 rout

Wall Street is set for a tentative recovery on Friday after the previous session’s technology selloff wiped roughly $800 billion from the market value of the so-called Magnificent Seven tech giants, with the world also waking to a new US tariff regime. 

Dow Jones futures were up 199 points or 0.4%, while S&P 500 was expected to add 0.2% and Nasdaq futures were broadly flat, having surrendered an earlier gain of around 0.25%.

The day before, the Nasdaq had tumbled 2.2% to 25,138 due to the worst session for the Mag 7 since the original “tariff tantrum” day. The S&P 500 fell 1.2% to 7,408, while the Dow shed 507 points, or 1%, to close at 51,712.

Investors dumped technology stocks after results from Tesla and Alphabet failed to ease concerns about surging AI spending. Higher oil prices also reignited inflation worries and pushed Treasury yields to their highest levels of the year.

After WTI crude reached a seven-week high of $93.5 a barrel the previous afternoon, prices eased to $89.8 on Friday morning.

Security concerns remain elevated after strikes in the Red Sea, which led some tanker operators to reroute vessels onto even longer journeys.

Meanwhile, Donald Trump confirmed new tariffs covering more than 99% of US goods imports under Section 301 rules.

The levies, ranging from 10% to 12.5%, take effect Friday and are designed to enforce restrictions on “forced labour” imports, the White House said.

“Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere,” US Trade Representative Jamieson Greer said.

Yale Budget Lab estimates the measures will lift the average statutory tariff rate to 12.8%.

In company news, Intel Corp (NASDAQ:INTC) gained 3% in premarket trading after beating second-quarter expectations and issuing a stronger outlook.

American Express Company (NYSE:AXP) has fallen 2.3% despite an earnings beat, while Verizon Communications Inc (NYSE:VZ, XETRA:BAC) is down 1.3% and NextEra Energy Inc (NYSE:NEE) has slipped 0.7% following mixed quarterly updates.

Elsewhere, a senior Korean official said Samsung and SK Hynix are expected to announce “very large-scale” contracts with leading US technology companies during President Lee Jae-myung’s visit to Silicon Valley, which starts today.