Nasdaq 100 futures increased by 0.2% on Friday, boosted by Oracle, as the artificial intelligence market aims to recover from recent fluctuations. Meanwhile, S&P 500 futures rose 0.1%, but Dow Jones futures fell by 22 points, or 0.1%.
Oracle’s Gains and Market Movements
In premarket trading, Oracle’s stock rose over 4% after TikTok agreed to sell its U.S. operations to a joint venture involving Oracle and Silver Lake. This marked a recovery for Oracle, which experienced declines earlier in the week due to losing a key supporter for one of its data center projects.
Other stocks tied to AI, such as Broadcom and Advanced Micro Devices, saw dips as a result. However, Nvidia shares increased about 1% after reports that the Trump administration is contemplating allowing the sale of advanced AI chips to China, highlighting a potential turnaround for the AI chip sector.
Nike’s Decline Amid Market Recovery
Nike’s stock fell by 10% due to declining revenue in its Greater China market and increased tariffs affecting its gross margins. This downturn comes despite a broader recovery in tech stocks, with the S&P 500 and Dow ending their four-day declines.
The Nasdaq Composite rose by 1.4%, spurred by positive inflation data and tech leader gains. The consumer price index showed a 2.7% year-over-year increase, which was lower than expected, giving investors hope for potential interest rate cuts in 2026.
Options Expiry and Market Outlook
Stocks, particularly semiconductor firms, remain approximately 8% below their peak values. Analysts suggest that while AI investment returns are uncertain, a combination of favorable monetary and fiscal policies could lead to a broader market rally.
This week, the S&P 500 and Dow fell by about 0.8% each, while the Nasdaq saw a similar drop. Trading volatility may increase on Friday as $7.1 trillion in options are set to expire.
