Stock futures were lower early Thursday after a mixed session, while investors weighed fresh legal, political, and geopolitical developments that could shape trading. The session ahead opens with pressure on megacap tech, rising scrutiny of prediction markets, and renewed attention on energy and war risks.
Here are five things to know before the market opens Thursday.
1. Meta faces another legal and business setback
A Los Angeles jury found that Meta and YouTube failed to warn users about risks tied to their platforms in a case centered on social media addiction. The jury set compensatory damages at $3 million and punitive damages at another $3 million, to be split between the two companies.
The verdict adds to a difficult week for Meta after a separate trial in New Mexico ended with a $375 million civil damages award in a case involving child exploitation claims. New Mexico Attorney General Raúl Torrez said the state will now seek changes to platform design, algorithms, and monitoring practices.
Meta is also cutting several hundred jobs, according to a source familiar with the matter, while offering new stock options to key leaders as it tries to keep top talent. The company has also brought back Hugo Barra as it works to narrow the gap in the artificial intelligence race, and shares are down nearly 10% so far this year.
2. The market is watching war and energy risks closely
Investors are still focused on the wider impact of conflict in the Middle East and the effect that higher energy prices could have on inflation and demand. Goldman Sachs senior chairman and former CEO Lloyd Blankfein warned that the market effects could last longer than the conflict itself.
That concern matches a fresh warning from Citrini Research founder James van Geelen, who said sustained energy costs could weaken consumer spending and corporate earnings. In a note published Wednesday, he said equities could move lower if the war does not end soon, even if the Federal Reserve moves toward rate cuts.
3. Space stocks are getting a lift from SpaceX IPO talk
Space shares rallied Wednesday after a report that SpaceX could file to go public as soon as this week. Firefly Aerospace jumped 16%, while AST SpaceMobile and Rocket Lab each climbed about 10% as traders rotated into the sector.
CNBC reported earlier that a SpaceX listing could become the largest IPO ever, with a potential valuation near $1.75 trillion. For investors looking for indirect exposure, funds tied to the space sector are drawing renewed interest as speculation around Elon Musk’s company builds.
4. Prediction markets face new political pressure
A group of congressional Democrats introduced a bill that would ban prediction market bets on elections, government decisions, war, and sports. The proposal adds to a growing push in Washington to impose tighter limits on a market that has drawn more attention from traders and regulators.
Rep. Seth Moulton of Massachusetts also said his office has imposed a ban on prediction markets, which his staff described as the first known office-wide rule of its kind in Congress. The new restrictions could matter for platforms that depend on event-based trading volumes and for investors tracking the sector’s regulatory risk.
5. Trading sentiment remains sensitive after a positive session
Stocks had finished the prior day higher, but futures slipped as traders reassessed whether recent gains can hold amid legal, policy, and global headlines. Investors are also looking for signs that the market can digest more bad news from large-cap tech without broadening weakness across growth stocks.
That makes Thursday’s open important for Meta, space-related names, and any shares linked to energy-sensitive sectors. With geopolitical risk still elevated and Washington stepping up scrutiny of fast-growing financial products, early trading could quickly show whether Wednesday’s rally was a reset or just a pause in a more volatile stretch.
Read more at: www.cnbc.com-
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