Dow Futures show a slight increase ahead of the final session of a volatile trading week. Tesla shareholders have sanctioned an extensive compensation arrangement for CEO Elon Musk, valued at approximately $1 trillion, as the billionaire aims to usher in a new phase for the electric vehicle powerhouse. The United States is poised to experience a decline in flight traffic at 40 airports nationwide due to an extended government shutdown. Concurrently, a media report indicates that the White House will prohibit Nvidia from selling its modified artificial intelligence chip to China.

Dow Futures indicated an upward trajectory on Friday, implying that markets may encounter further volatility as they approach the concluding session of a tumultuous week driven by apprehensions regarding high valuations. By 02:16, the Dow futures contract had risen by 100 points, reflecting a 0.2% increase, while S&P 500 futures experienced a gain of 18 points, or 0.3%. Additionally, Nasdaq 100 futures saw an ascent of 89 points, corresponding to a 0.4% rise. The principal indices experienced a downturn on Thursday, primarily influenced by a drop in technology stocks, marking a continuation of the sell-off that began on Tuesday, which was notably fueled by concerns regarding the viability of the tech sector’s elevated valuations. A notable increase in investment in artificial intelligence by various large-cap technology firms has conferred upon them a commanding position in the broader equity market. However, a segment of investors has started to express concerns regarding the timeline for these expenditures to generate returns. Meanwhile, the ongoing federal government shutdown continues to impede the availability of critical data required by both markets and policymakers to assess the condition of the American economy. In the absence of these figures, alternative sources have gained prominence, illustrating a weakening labor market that is partially being affected by a surge in layoffs as numerous companies shift towards AI adoption and cost-cutting measures. Market participants were evaluating a multitude of corporate earnings reports. As the third-quarter reporting period approaches its conclusion, approximately 83% of the 424 companies in the S&P 500 that have released their results thus far have exceeded market’s expectations.

Tesla shareholders have approved a new compensation package valued at approximately $1 trillion for CEO Elon Musk, notwithstanding objections from certain investors who are apprehensive about the extent and implications of the award. With the endorsement of 75% of shareholders in the electric car manufacturer, Musk seems to have received the green light to advance his objective of transforming Tesla into a company focused on AI and robotics. This vision has emerged as a pivotal element in shaping the tech tycoon’s impact on the enterprise, as well as Tesla’s market valuation. Despite the ongoing apprehensions regarding the influence of Musk’s political engagements on Tesla’s brand image, he has received renewed support to pursue initiatives aimed at developing humanoid robots and establishing a nationwide robotaxi network. Board members at Tesla cautioned that rejecting Musk’s compensation package might lead him to depart from the company entirely, a scenario that, according to some, could adversely affect the firm’s stock price. Musk informed shareholders that Tesla was not merely entering a “new chapter,” but rather “a whole new book.”

U.S. airlines are currently engaged in a thorough assessment of their schedules and are addressing the concerns of cautious customers following the announcement from federal transportation officials regarding a reduction in flights at major airports commencing on Friday. The recent development, occurring amidst the longest government shutdown in history that has intensified the shortage of air traffic controllers and airport security personnel, is expected to affect hundreds of thousands of travelers. Estimates from the aviation analytics group Cirium, indicate that as many as 1,800 flights could be canceled, resulting in a reduction of approximately 268,000 airline seats per day in the U.S. It is important to highlight that international flights will remain unaffected by the reductions. Transportation Secretary Sean Duffy has stated that traffic at 40 major airports could be reduced by as much as 10%, contending that this measure is essential for safety considerations. Officials have observed that the shutdown has strained staffing levels, delayed flights, and resulted in extended queues at airports.

The Trump administration is set to prevent Nvidia from selling its less powerful artificial intelligence chips to China, as reported by The Information on Thursday, referencing three individuals with knowledge of the situation. The White House has communicated to federal agencies that Nvidia is prohibited from selling the B30A chip to China, according to the report. Nvidia reportedly supplied samples of the chip to multiple customers in China, as stated in the Information report. The B30A was developed by Nvidia to surpass the capabilities of the H20 model, which it is presently permitted to sell in the country, as indicated by reports from earlier this year. Nvidia, recognized for producing the most advanced artificial intelligence processors available, has emerged as a significant factor in the ongoing U.S.-China trade conflict this year, facing a temporary prohibition on sales to the country, including the China-specific H20.

In October, China’s trade balance experienced a contraction as exports unexpectedly declined for the first time in 18 months, reflecting ongoing pressures from elevated U.S. trade tariffs and a slowdown in overseas demand. Government data released on Friday indicated that the country recorded a trade surplus of $90.07 billion in October. The figure significantly underperformed relative to expectations of $96.90 billion, and also declined from the $90.45 billion surplus recorded in the previous month. In October, Chinese exports contracted by 1.1% compared to the previous year, according to the data, falling short of analyst forecasts that anticipated a 3% rise, and representing a significant deceleration from the 8.3% increase observed in September. China experienced its inaugural monthly decline in exports since March 2024. The disappointing trade figures emerged against the backdrop of escalating trade tensions between Washington and Beijing in October. China has been observed imposing additional restrictions on its rare earth exports, while the U.S. has signaled the possibility of further tariff measures against the nation. However, a consensus to de-escalate the trade tensions was achieved after a direct meeting between President Donald Trump and Chinese President Xi Jinping in South Korea.