AM Markets Need to Know: Tesla unveils flying Roadster, chip stocks slide, and more

Stock index futures were mixed on Friday as technology stocks looked to extend their recovery after a difficult week.

Here are the five news items investors should watch:

Tesla's next-gen Roadster features aerial maneuvers: Tesla (TSLA) showcased its next-generation Roadster at a SpaceX (SPCX) testing facility in Texas, with Elon Musk highlighting technology developed through the automaker's collaboration with the rocket maker. Demonstrations featured suction technology and thrusters that allowed the vehicle to perform midair maneuvers, including a barrel roll. Musk said the model would eventually become Tesla's only manually driven car, highlighting the company's ambitions for its flagship sports car.

Semiconductor ETF extends losing streak to eight sessions: The iShares Semiconductor ETF (SOXX) fell for an eighth consecutive session on Thursday, marking its longest such streak since September 2015. The fund closed at $514.71, down 12.6% from its Oct. 2 close of $588.90, as investors reassessed the sustainability of AI infrastructure spending amid rising borrowing costs and uncertainty over returns on large capital investments.

Fed's Warsh sees AI productivity gains but warns of disruption: Federal Reserve Chair Kevin Warsh said artificial intelligence could substantially boost productivity and wealth in economies that successfully adopt the technology, while cautioning that the transition will be uneven. Speaking at the IMF-World Bank Annual Meetings in Bangkok, Warsh also said AI's near-term effects on employment remain uncertain. His comments highlight the potential economic benefits of AI alongside risks to labor markets and the broader outlook.

Anthropic IPO valuation expectations face renewed scrutiny: Anthropic's anticipated $2T valuation ahead of a planned November IPO is facing investor resistance, with some reportedly considering a valuation closer to $1.5T, Reuters reported. The reassessment follows the company's latest financial disclosures, as some investors question whether revenue growth can justify the cost of AI development. Anthropic reported third-quarter revenue of $16.8B, up 45% from the prior quarter, slower than its more than doubling of revenue between the first and second quarters.

Senate Republican super PAC reports record fundraising: The Senate Leadership Fund raised $272.9M in the third quarter, including $209.7M from donors, according to a Federal Election Commission filing. The Republican-aligned super PAC reported more than $155M in cash heading into the final weeks before the Nov. 3 midterm elections. The fundraising total provides a measure of the group's financial resources as campaigns enter the closing stretch, with the election outcome potentially affecting the legislative outlook for markets.