U.S. stock futures showed little movement in Thursday's pre-market session as investors closely monitored trading dynamics in the AI sector, where valuations have soared to staggering levels. Meanwhile, the U.S. Supreme Court heard arguments on the legality of tariffs imposed by the Trump administration, drawing traders' attention to developments in Washington.

As of the latest update, Dow futures rose 0.02%, S&P 500 futures gained 0.09%, and Nasdaq futures edged up 0.06%.

Fresh data revealed that U.S. Challenger job cuts hit their highest level for October in over two decades, reigniting expectations of a Fed rate cut next month. The dollar weakened, while gold climbed back above $4,000.

European markets faced pressure, with the Stoxx Europe 600 slipping 0.1%, led by France’s CAC 40, which fell 0.4%. Asian stocks, however, advanced 1.2%, extending Wednesday’s rebound on Wall Street.

Despite strong corporate earnings, optimism around "buying the dip" in U.S. stocks is waning as lofty tech valuations keep investors cautious. S&P 500 and Nasdaq 100 futures remained subdued, with Qualcomm—the world’s largest smartphone chipmaker—failing to impress markets despite an upbeat earnings outlook, dropping 2.9% pre-market.

**Buying Pressure Persists** This week’s trading has been marked by a pullback in high-flying AI stocks, which quickly attracted dip-buying support. Overall corporate earnings remain robust, with 81% of S&P 500 companies beating expectations.

AI-related stocks rebounded from earlier valuation concerns, providing another potential tailwind for major indices. The AI rally helped markets recover Wednesday after a weak start to the week, though the three major U.S. indices remain in the red for the week.

"The outlook remains cloudy, with bulls hesitant, but buying interest hasn’t truly faded," said Ipek Ozkardeskaya, senior analyst at Swissquote. "With retail investors so eager to jump back in, I doubt we’ll see a meaningful correction."

"We’re still in the early stages of the AI supercycle," noted Shirl Penney of Dynasty Financial Partners on CNBC. "Capital expenditures will keep rising sharply, not just among the 'Magnificent Seven' but also at major financial firms like Charles Schwab and JPMorgan."

**Fed Rate Cut Bets Rekindled** U.S. Treasury yields retreated after data showed October job cuts surged to a 20-year high, driven by AI-driven industry shifts and cost-cutting measures. This bolstered expectations of a Fed rate cut next month, weakening the dollar below the 100 mark—its steepest drop in three weeks.

Challenger, Gray & Christmas reported 153,074 job cuts in October, nearly triple last year’s figure, with tech and warehousing sectors hit hardest. "Companies are correcting pandemic-era overhiring, but AI adoption, weak spending, and rising costs are forcing budget cuts," said Andy Challenger.

The data contradicts Fed Chair Jerome Powell’s recent remarks about a "very gradual cooling" in the labor market. Meanwhile, ADP reported 42,000 private-sector job gains in October, ending two months of declines but signaling persistent weakness in labor demand.

**Gold Breaks $4,000** Gold prices climbed past the key $4,000/oz level, supported by dollar weakness and Supreme Court skepticism over tariffs. "Further Fed easing could push gold to $4,200 by year-end," said UBS’s Giovanni Staunovo.

**Potential Market Boost if Tariffs Scrapped** U.S. stocks rallied as Supreme Court justices expressed doubts about Trump’s unilateral tariff authority. A ruling against the tariffs could unleash a market surge, relieving businesses of profit-sapping import taxes and easing inflation concerns.

**Warning Signs Emerge** Despite hovering near record highs, ominous signals like the "NASDAQ Titanic Syndrome" (triggered four times in five sessions) and the "Hindenburg Omen" (twice) suggest underlying market fragility, per SentimenTrader.

**Deutsche Bank Hedges AI Bets** Deutsche Bank is exploring hedges against its data-center exposure, including shorting AI stocks and synthetic risk transfers, amid fears of an AI bubble akin to the dot-com era.

**Key Stocks in Focus** - Marvell Tech rose 10% pre-market on SoftBank’s reported takeover interest. - Lyft gained 2.5% on upbeat Q4 bookings guidance. - AppLovin surged 7.6% after strong earnings and a $3.2B buyback plan. - Stagwell spiked 60% on a Palantir AI partnership. - Warner Bros. Discovery fell 5% on weak streaming revenue. - Nasdaq dropped 1.7% amid an EU antitrust probe. - Coherent jumped 15% on better-than-expected earnings. - Duolingo tumbled 21% on weak Q4 bookings guidance. - Fortinet slid 10% after missing Q3 targets. - WeRide rose 3% on autonomous driving progress. - XPeng gained 5% on Citigroup’s bullish call. - Alibaba climbed 3% on strong Singles Day sales. - NetEase added 2% on upbeat Q3 expectations. - JD.com rose 1.7% after launching a co-developed EV.