Nasdaq futures dive 1% as AI rout deepens on debt concerns
QQQ•Nasdaq futures fell 1.3% as investors worried higher interest rates could make it harder for companies to fund AI investments. A selloff in chipmakers and cloud companies wiped out $80 billion in market value on Wednesday.
1. Tech stocks extend losses
Nasdaq futures fell more than 1% on Thursday after the Nasdaq and S&P 500 posted their biggest one-day drops since July on Wednesday. CoreWeave fell 4.5% in premarket trading after dropping 15% the previous session, while Oracle fell 2% after a nearly 9% decline. Nvidia, Micron Technology and Advanced Micro Devices also fell.
2. Rates weigh on sentiment
Investors are concerned that higher interest rates could hinder funding for AI investments. Taiwan Semiconductor Manufacturing struck a cautious note on 2027 due to macroeconomic uncertainties, despite reporting its sixth consecutive record quarterly profit. CoreWeave and Oracle bonds also came under pressure, with yields reaching record highs on Wednesday.
3. Investors await data
Traders priced in a 27% chance of a Federal Reserve rate hike later this month, up from 20% a week earlier, and a 67% chance of a 25-basis-point hike in December. Investors were watching for producer prices data, with retail sales and jobless claims figures also due later Thursday.
