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

• The Nasdaq tumbled 2.2% to 25,138 on Thursday, marking the worst session for the Mag-7 since the original 'tariff tantrum,' while the S&P 500 fell 1.2% and the Dow dropped 507 points
• New Section 301 tariffs ranging from 10% to 12.5% took effect Friday, designed to enforce 'forced labour' import restrictions and pushing the average statutory tariff rate to 12.8%
• Oil prices reached a seven-week high of $93.5 per barrel before easing to $89.8, driven by Red Sea security concerns and tanker rerouting, reigniting inflation worries and pushing Treasury yields to yearly highs

Market Summary: Wall Street Eyes Recovery After Tech Selloff

Market Overview:

Wall Street futures pointed to a tentative Friday rebound following Thursday's brutal technology selloff that erased approximately $800 billion from the Magnificent Seven tech giants' market capitalization. Dow Jones futures rose 199 points (+0.4%), S&P 500 futures gained 0.2%, while Nasdaq futures remained flat after surrendering earlier gains.

Previous Session Losses:

Thursday saw the Nasdaq plummet 2.2% to 25,138—the worst Mag-7 session since the original "tariff tantrum." The S&P 500 dropped 1.2% to 7,408, and the Dow shed 507 points (-1%) to close at 51,712.

Key Drivers:

Investors fled technology stocks after disappointing earnings from Tesla and Alphabet intensified concerns about excessive AI spending. Rising oil prices fueled inflation fears, pushing Treasury yields to 2026 highs. WTI crude hit a seven-week peak of $93.50 per barrel Thursday before easing to $89.80 Friday morning, driven by Red Sea security concerns forcing tanker reroutes.

Tariff Developments:

President Trump implemented new tariffs covering over 99% of US goods imports under Section 301, ranging from 10-12.5%, effective Friday. Aimed at combating "forced labour" imports, the measures raise the average statutory tariff rate to 12.8%, according to Yale Budget Lab estimates.

Corporate News:

Premarket trading showed mixed results, with one unnamed company gaining 3% on strong earnings. Samsung and SK Hynix are expected to announce "very large-scale" contracts with major US tech firms during President Lee Jae-myung's Silicon Valley visit beginning Friday.

Market Implications:

Heightened volatility persists amid tariff uncertainty, elevated oil prices, and skepticism surrounding AI investment returns.