Stock futures rise as tech shares rebound following sell-off: Live updates

Stocks rose on Friday, supported by technology stocks, following a losing session in which an underwhelming revenue report from OpenAI took some steam out of the high-flying artificial intelligence trade.

The Nasdaq Composite added 0.5%. The S&P 500 climbed 0.3%, while the Dow Jones Industrial Average traded up 142 points, or 0.3%.

Tech shares broadly were led by a 2% gain in SpaceX. The Elon Musk-led space and satellite company rose on a deal to buy a nationwide spectrum portfolio. Shares of AT&T, Verizon and T-Mobile slid as investors wondered worried the agreement could drive up competition.

Other tech names that advanced on Friday include Lumentum and Oracle, which gained 6% and 5%, respectively.

AI stocks dropped on Thursday after CNBC confirmed that OpenAI told investors that it saw $50 billion in annualized revenue at the end of September. Last month, a $68 billion figure was widely reported, though a person familiar with the matter said it also included gross revenue from partners.

The Nasdaq dropped more than 1%, marking its biggest one-day loss since mid-August. Thursday marked the second down day in a row for the tech-heavy index after it climbed to fresh all-time records earlier in the week.

“The sell-off reflected extreme positioning imbalances that have further to unwind in our view, which is why the whole AI-linked tech stock complex is unlikely to simply stage a sharp, V-shaped rebound,” wrote Adam Crisafulli of Vital Knowledge.

“When it comes to AI, the main issue isn’t the gross vs. net issue with [annualized recurring revenue] but instead: 1) the fact that the standalone frontier labs are increasingly unattractive businesses … and 2) growing signs that markets are pushing back on the tidal wave of AI-linked debt and equity being thrown at them,” he added.

All three major averages are heading for a winning week. The Dow and Nasdaq have risen 0.3% and 0.5%, respectively, while the S&P 500 has gained nearly 1%.