MARKET SNAPSHOT: Tech Stocks Set To Lead Downturn For U.S. Stocks A Day After Dow Smashes Through 24,000

Dow flirts with strongest weekly gain since December 2016

U.S. stock futures fell Friday, with the Dow industrials average and S&P 500 set to fall from record highs as investors erred on the side of caution after a crucial vote on tax reform was pushed back.

Technology stocks were set to bear the brunt of the selling in a week that has seen the sector struggle.

What are stock futures doing?

Futures for the Dow Jones Industrial Average dropped around 84 points, or 0.3%, to 24,189, after finishing above the 24,000 mark for the first time ever on Thursday. For the week, the blue-chip benchmark was on track for a 3% rally as of Thursday's close, which would be the biggest one-week jump since December last year.

Read: Where to stash your money when this bull market makes you sweat (

Futures for the S&P 500 index dropped 12.15 points, or 0.5%, to 2,635.50, while those for the Nasdaq-100 Index lost 47.25 points, or 0.8%, to 6,321.

The S&P 500 was as of Thursday's close looking at a 1.7% weekly rise, while the Nasdaq Composite Index was set for a 0.2% loss. The Nasdaq index on Wednesday suffered its biggest drop in more than three months, as highflying tech stocks slumped amid portfolio rebalancing among traders.

What's driving the market?

Non-tech stocks have rallied this week on growing optimism the Senate would approve a major tax overhaul that's seen as supportive to financial markets. The final vote on the bill was expected late Thursday, but was pushed to Friday because a number of issues still remain to be resolved (

Read:Here's what's next for the Senate's tax bill (

Among key concerns is how to finance the tax cuts. On Thursday, the Joint Committee on Taxation said the Senate bill would generate more than $400 billion in revenue over 10 years through economic growth, but that's not nearly enough to compensate for the measure's $1.4 trillion cost.

What are strategists saying?

"Tax cut plans were thrown into confusion by the realization that the U.S. Treasury Secretary repeating 'tax cuts pay for themselves' does not, in fact, make it true," said Paul Donovan, global chief economist at UBS Wealth Management, in a note.

"Faced with this crisis, U.S. President Trump has responded with swift and decisive leadership by publicly saying 'Merry Christmas'. Like every other president has done. We believe that Congress will work out a tax cut plan, but it may take a bit more time," he added.

What's on the economic docket?

The Markit manufacturing purchasing managers index for November is out at 9:45 a.m. Eastern Time, followed by the ISM manufacturing reading at 10 a.m.

Construction spending for October is also due at 10 a.m., while monthly car sales for the same month trickle out through the day.

What stocks are moving?

Some heavily-weighted tech stocks were set to drive the action on Friday. In premarket trading, shares of Apple Inc. (AAPL) fell 0.8%, while Netflix Inc.(NFLX) slid 1.1%, and Google parent Alphabet Inc.(GOOGL) dropped 0.7%.

Shares of Blue Apron Holdings Inc.(APRN) climbed 3% ahead of the bell after the struggling meal-kit maker late Thursday installed Chief Financial Officer Brad Dickerson as Chief Executive (, pushing out co-founder Matthew Salzberg.

Mylan NV(MYL) shares could also move after a CNBC report on Thursday that Inc. (AMZN) was holding preliminary talks with generic drugmakers ( -- including Mylan and Novartis AG(NOVN.EB) (NOVN.EB) unit Sandoz -- as it contemplates entering the pharmacy business.

Read:'It made us look bad': Pharma CEOs clash over Allergan patent move (

What are other markets doing?

Asian markets closed mixed (, while European stocks were firmly lower in the early going.

Oil prices advanced (, building on gains seen after major oil producers on Thursday hammered out an agreement that was widely expected, to extend ongoing production curbs through 2018. Crude for January traded 0.6% higher at $57.74 a barrel.

Gold rose 0.3% to $1,280 an ounce. The ICE Dollar index was down 0.2% at 92.901.

(END) Dow Jones Newswires

December 01, 2017 07:27 ET (12:27 GMT)