Preview of US Stock Market | The three major stock index futures are mixed, the U.S. October nonfarm payrolls report is set to arrive tonight, and chip stocks are staging a major rebound.

Premarket Market Moves 1. On Friday, November 6, in the U.S. premarket session, the three major U.S. stock index futures were mixed. As of press time, Dow futures were down 0.99%, S&P 500 futures were up 0.31%, and Nasdaq futures were up 1.62%. 2. As of press time, Germany's DAX index was down 2.42%, the UK's FTSE 100 was down 2.34%, France's CAC 40 was down 1.84%, and the Euro Stoxx 50 was down 1.56%. 3. As of press time, WTI crude oil was up 0.54% at $91.01 per barrel; Brent crude oil was up 0.47% at $98.75 per barrel. Market News Tonight's nonfarm payrolls report may signal disinflation: employment is expected to rebound, but wage growth could fall below 3% for the first time in five and a half years. U.S. October nonfarm payrolls may have rebounded, but wage growth is expected to slow to below 3.0%, the first time in nearly five and a half years, which would reinforce the view that the labor market is not a source of inflation. The closely watched employment report due Friday from the Labor Department is also expected to show the unemployment rate held steady at 4.2% last month and very likely fell to 4.1%. Layoffs at historically low levels and a recent surge in job openings have raised the possibility that the labor market is tightening. U.S. stock selloff drives flows into Treasuries; traders bet on further declines in yields. Ahead of Friday's U.S. October employment report, bond traders have bet on further gains in the U.S. Treasury market, while expectations that the Federal Reserve will continue raising rates have continued to cool. A global equity selloff after the U.S. midterm elections drove investors into U.S. Treasuries this week as a safe haven, with the 10-year Treasury yield falling Thursday to its lowest level since early September. Positive AI signals emerge, Nasdaq futures stage a comeback. Analysts said the earlier U.S. stock plunge was mainly because the market expected AI infrastructure could change if the Democratic Party took power. But news today indicated that things may not be as extreme as "sparing no effort to suppress AI." Well-known tech investor and Atreides Management founder Gavin Baker posted on X on Thursday that Texas Governor-elect Gina Hinojosa has made clear that all currently permitted Texas data centers will be allowed to complete construction. Hinojosa plans to pass legislation requiring future newly permitted data centers scheduled for delivery between 2028 and 2029 to pay taxes, commit not to drive up residential electricity prices, not affect residential water use, use union labor for construction, and give "Texans a seat at the table in decision-making." Fed's Williams: Inflation is too high and has persisted too long. In his latest remarks, New York Fed President Williams said: "The U.S. labor market is currently unusually stable and solid. The U.S. economy is remarkably resilient, and growth has strengthened. Inflation in the United States is currently too high and has persisted too long, and the inflation rate must be brought down to 2% in a timely manner. Energy prices are being reflected in airfare prices in the expected manner, and we have also seen a limited impact from artificial intelligence on prices for chips and other items. We have witnessed the pass-through of tariff effects, and that impact is now largely in the past." About 40% of planned U.S. data center capacity is located in states considering pausing construction. Data from market intelligence firm Cleanview shows that about 40% of pending U.S. data center capacity is planned for those states. In addition, according to statistics, 46 local ballot measures have passed or are expected to pass, and these measures would also hinder data center development. At least 17 of them directly prohibit the construction of large data centers. Dutch International Bancshares Corporation plans to sell $500 million of data center loans in a package. According to reports, Dutch International Bancshares Corporation is planning to sell a portfolio of data center loans totaling about $500 million in one transaction. People familiar with the matter said the loan portfolio includes a $25 million loan related to a large data center in New Mexico. The data center is part of "Stargate," an artificial intelligence infrastructure project backed by OpenAI, SoftBank Group, and Oracle Corporation. The sale comes as chipmakers and so-called "neocloud" companies face a broader selloff. Expectations for easing Middle East tensions are rising. The office of the Emir of Qatar said that in a phone call with Trump, he discussed diplomatic efforts to ease regional tensions. Hopes in the market for a faster resolution to the conflict are rising, but major differences remain between the two sides. Iran demands that the United States lift its maritime blockade, ease sanctions, and unfreeze frozen assets before fully reopening the Strait of Hormuz. Reports said Tehran is reviewing a mediation proposal regarding its nuclear program, suggesting that Qatar's diplomatic efforts to avoid another full-scale escalation of the conflict may be making progress. Individual Stock News Chip stocks rebound collectively in premarket trading, with memory and AI chips surging across the board. Driven by oversold repair after Thursday's sharp drop in the Philadelphia Semiconductor Index, U.S. chip stocks staged a strong counterattack in premarket trading. As of press time, SanDisk (SNDK.US) was up more than 11%, Micron Technology, Inc. (MU.US) was up more than 9%, Marvell Technology, Inc. (MRVL.US) was up more than 9%, AMD (AMD.US) was up more than 8%, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) was up more than 7%, Intel Corporation (INTC.US) was up more than 6%, Broadcom Inc. (AVGO.US) was up more than 4%, and NVIDIA Corporation (NVDA.US) was up more than 4%. The narrative of AI computing demand was partially repaired after business results from Cloudflare (NET.US), IREN (IREN.US), and others validated it, but the shadow of weak prior guidance from Qualcomm (QCOM.US) and Arm (ARM.US) has not dissipated, and whether the sector's rebound can continue still depends on tonight's nonfarm payrolls report and subsequent AI stock earnings. Cloudflare Q3 revenue and net profit both beat expectations, shares surge about 19% in premarket trading. Cloudflare announced after the close on November 5 its fiscal 2026 third-quarter results: revenue of $782.5 million, up 39% year over year (the fastest single-quarter growth in nearly four years), and non-GAAP earnings per share of $0.38, both beating Wall Street expectations (revenue of $736.8 million and EPS of $0.34); the non-GAAP operating margin of 17.5% hit a record high. The CEO called this quarter the "best quarter in history," with AI and the agentic internet becoming the main demand drivers and active developers exceeding 10 million. The company raised its full-year non-GAAP EPS guidance to $1.35 (the third time this year), and its Q4 revenue guidance of $845.5 million beat expectations by about 6%. IREN (IREN.US) Q1 revenue beat expectations but its ARR target was delayed, shares rebound about 18% in premarket trading. IREN announced after the close on November 5 its fiscal 2027 first-quarter results (for the period ended September 30): revenue of $228 million, up 66% quarter over quarter and above expectations of about $221 million, including AI cloud revenue of $200 million, up 182% quarter over quarter; net loss of $263 million narrowed sharply from $684 million in the previous quarter, but loss per share of $0.66 was greater than the expected $0.48; adjusted EBITDA of $66 million beat expectations. However, the company delayed its target of more than $4 billion in annualized revenue (ARR) from Microsoft Corporation from the end of the year to January 2027 (Microsoft Corporation requires network upgrades). Anthropic (ANT.US) IPO situation changes, $1.5 trillion valuation may shrink to $1 trillion. According to reports, the IPO roadshow of AI giant Anthropic, originally scheduled for next week, may face complications, with some potential investors questioning that its $1.5 trillion valuation is too high and demanding a larger discount. One investor believes the valuation may be closer to $1 trillion. The company continues to post quarterly losses and invest heavily in AI infrastructure, and combined with the recent sharp selloff in AI-related assets and weaker market sentiment, a delay in listing would further intensify market concerns about AI financing capacity and valuation levels, resonating with this week's sharp drop in AI stocks. Democrats plan to investigate Apple Inc., Meta (META.US), and companies owned by Musk. According to reports, senior U.S. congressional Democrats have been studying a 181-page investigative dossier that lists hundreds of corporate executives and companies they plan to investigate after Democrats control both the Senate and House next year. The document argues that Democrats should use the opportunity of election victory to launch aggressive investigations into large corporations, targeting dozens of industries including tech giants, artificial intelligence labs, natural gas companies, private prison operators, and nursing home operators. The document envisions a series of high-profile congressional hearings next year, requiring executives from healthcare, technology, and energy companies to appear for questioning and in many cases pressuring them to resign or compensate consumers. Tesla, Inc. (TSLA.US) plans to stop Cybertruck production and switch to Cybercab. According to reports, Tesla, Inc. CEO Musk said the company plans to gradually halt Cybertruck production at Gigafactory Texas around mid-2027 to free up capacity to expand production of the newly launched Cybercab. Cybertruck has underperformed expectations since launch and has been plagued by multiple recalls and quality control issues; as Tesla, Inc. shifts toward AI and autonomous driving mobility, tilting capacity toward Cybercab is consistent with its strategic shift. Key Economic Data and Event Preview Beijing time 21:30: U.S. October nonfarm payrolls report Beijing time 22:10: Speech by St. Louis Fed President Musalem, a 2028 FOMC voter Beijing time 23:00: Preliminary U.S. University of Michigan consumer sentiment index for November Beijing time 00:00 the next day: Bank of Japan Governor Kazuo Ueda speaks at the International Monetary Fund (IMF), followed by a dialogue with IMF Managing Director Georgieva Beijing time 01:15 the next day: Speech by Federal Reserve Governor Bowman Beijing time 02:00 the next day: Total U.S. rig count for the week ended November 6