Nasdaq futures drop over 1% as AI worries resurface and oil climbs
QQQ•Nasdaq 100 futures fell 1.93%, while S&P 500 futures dropped 1.1% and Dow futures declined 0.69%, as concerns about AI spending and higher oil prices weighed on sentiment. Brent crude rose more than 3% to $112 a barrel.
1. Futures retreat
Nasdaq futures slid more than 1% as investors focused on the cost of the AI buildout after Tesla and Meta Platforms earnings did little to ease concerns. SpaceX fell 2.3% and Super Micro declined 4.7% in premarket trading.
2. Technology shares fall
Tesla dropped 5.3% after cutting its annual capital expenditure forecast, while Meta slipped 1.9% after introducing new non-voting shares to help fund its AI spending. Amazon fell 1.6% and Nvidia lost 2.4%; Intel was down 5.1%, and other chip stocks declined between 2.9% and 5.3%.
3. Oil and yields
Brent crude climbed more than 3% to $112 a barrel after further Houthi attacks in Saudi Arabia raised fears of supply disruptions and a wider Middle East conflict. The 10-year Treasury yield fell to around 5.085%, while Bitcoin dropped 3.4%.
