US stocks slip pre-bell as AI spending concerns persist

US equity benchmarks traded lower in premarket activity Friday, with the S&P 500 down 0.1% and the Dow Jones Industrial Average declining 0.5%, as investor caution over artificial intelligence expenditures continued to weigh on sentiment. The Nasdaq 100 slipped 0.1%, following a session the previous day in which the Nasdaq Composite recorded its largest one-day percentage drop since June 5.

Tech stocks displayed mixed movement before the opening bell. Shares of Nvidia (NVDA), Advanced Micro Devices (AMD) and Tesla (TSLA) edged higher after closing lower in the prior session. Meta Platforms (META), which recently stated its intention to maintain aggressive investment in core business and AI initiatives, fell 0.6% following a 7% decline at Thursday's close.

Corporate earnings from American Express (AXP), SLB (SLB), Infosys (INFY), Rogers Communications (RCI), Booz Allen Hamilton (BAH) and Autoliv (ALV) were scheduled for release before the open.

In energy markets, West Texas Intermediate crude oil rose 1.7% to $101.12 a barrel, and Brent crude advanced 1.2% to $114.48. President Donald Trump posted on social media Thursday that Iran was attempting to inflate oil prices ahead of US midterm elections, alleging the country was fabricating incidents to disrupt supply through the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps countered that four vessels were struck in the Persian Gulf and three others were hit by mines in the Strait of Hormuz, according to reports from Tasnim news agency.

Biotech stocks saw volatility as Moderna (MRNA) shares dropped 5.5% before the bell, extending an 18% decline from Thursday. The move followed The Wall Street Journal's report that leaked data from an experimental cancer vaccine trial missed high market expectations. Moderna and partner Merck later issued a statement noting that intismeran autogene, when combined with Keytruda, reduced the risk of melanoma recurrence or death by 42% in a phase 3 trial.

Consumer discretionary names also fell, with Deckers Outdoor (DECK) shares slipping 8% after the footwear distributor lowered its full-year sales outlook. Truist noted in a client that a promotional US footwear market was driving the softer top-line view and raising concerns about category saturation.

Treasury yields moved higher early Friday, with the two-year rate up 4.5 basis points to 4.68% and the 10-year rate adding 3.5 basis points to 4.99%. Spot gold declined 0.5% to $4,038 per troy ounce, while bitcoin rose 0.3% to $81,602. Economic data for October included the S&P Global flash purchasing managers' index at 9:45 am ET, the final University of Michigan consumer sentiment report at 10 am, and the Baker Hughes oil-and-gas rig count at 1 pm.