5 Things to Know Before the Stock Market Opens

Stock futures are mixed this morning after the Dow Jones Industrial Average and the S&P 500 closed at record highs yesterday; tech stocks remain under pressure amid ongoing concerns about an AI bubble; shares of Broadcom are down sharply despite a better-than-expected earnings report from the chip giant; President Trump has signed an executive order looking to limit how states can regulate AI; and Lululemon stock is soaring after the athletic apparel company reported strong results and announced a CEO succession plan. Here's what you need to know today.

Stock Futures Mixed After Dow, S&P 500 Hit New Highs

Stock futures are pointing to a mixed open as persistent questions about the AI trade are weighing on tech stocks. Dow Jones Industrial Average futures were up 0.2% recently, after the blue-chip index soared more than 600 points to a record close on Thursday. Futures tied to the benchmark S&P 500 index, which also hit a record closing high yesterday, were down 0.1%, while futures linked to the tech-focused Nasdaq slid 0.5%. The yield on the 10-year Treasury note was at 4.18% this morning, up from 4.14% at yesterday's close, after falling as low 4.10% early Thursday following the Federal Reserve's latest rate cut. Gold futures were up 1.2% at $4,365 an ounce, not far from the record high set in mid-October. Bitcoin was holding steady around $92,000.

Broadcom Stock Tumbles Despite Solid Earnings

Shares of Broadcom (AVGO) are sinking even though the chip designer topped estimates for its fiscal fourth quarter, the latest example of the high bar that companies need to clear with investors amid concerns about the sustainability of the AI trade. The stock initially rose in extended trading Thursday after the results were released, before turning negative. Broadcom stock, which hit a record high on Wednesday, has been mostly able to avoid the selloff that hit tech stocks in recent months. Shares were down more than 6% in recent premarket trading.

Tech Stocks Extend Slump as AI Bubble Fears Persist

Shares of technology companies are broadly under pressure this morning, adding to the previous session's declines. Oracle (ORCL) stock is down about 1% ahead of the bell following Thursday's 11% drop, which came after the company reported disappointing sales and failed to address investor concerns about its concentrated customer base and plans to finance its AI data center buildout. Similar to Thursday, shares of several other AI hardware makers are moving lower, including Micron Technology (MU) and Advanced Micro Devices (AMD). Oracle shares are down about 40% from the record highs they reached in September, when Oracle revealed it had grown a massive backlog of AI-related orders.

Trump Signs Executive Order Looking to Combat 'Onerous' AI Regulations

President Trump on Thursday signed a series of executive orders, including one regarding how states should be able to regulate artificial intelligence. The order says that having varying regulations at a state-by-state level "by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging." Thursday's order is designed to act as a temporary solution until Congress can create a federal standard of AI regulations that would take precedence over any state laws. In the order, Trump told the Attorney General to create a task force designed to litigate against states with AI regulations that are deemed excessive.

Lululemon Stock Pops on Strong Results, CEO Succession Plan

Lululemon stock is surging after the clothing retailer reported strong quarterly results, approved a $1 billion increase to its stock buyback plan, and announced a succession plan for its CEO. Revenue of $2.57 billion and earnings per share of $2.59 each came in above the analyst consensus compiled by Visible Alpha. Current CEO Calvin McDonald announced plans to step down at the end of January. Lululemon said it is working with a search firm to identify candidates, and said the company's current CFO and Chief Commercial Officer will serve as interim co-CEOs if a candidate is not selected by the time McDonald steps down. Lululemon shares, which through Thursday's have lost about half their value so far in 2025, were up 10% in premarket trading.

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