Nasdaq futures fall 1% as AI rout deepens on debt concerns
QQQ•Nasdaq futures fell 1.1% on Thursday as higher-rate concerns pressured AI-related stocks. Dow futures rose 0.3%, while S&P 500 futures fell 0.3%.
1. AI stocks extend losses
Fears that higher interest rates could curb AI funding drove Nasdaq futures down more than 1% on Thursday, after the Nasdaq and S&P 500 recorded their biggest one-day drops since July on Wednesday. CoreWeave fell 6.3% premarket after a 15% decline, Oracle lost 2.1%, and Nvidia, Micron Technology and Advanced Micro Devices also fell.
2. Rate concerns weigh
TSMC struck a cautious note for 2027, citing macroeconomic uncertainties, despite reporting its sixth consecutive record quarterly profit. Traders priced in a 27% chance of a rate hike later this month, up from 20% a week earlier, and a 67% chance of a 25-basis-point hike in December.
3. Data and earnings ahead
Investors were watching for producer prices data, September retail sales and initial jobless claims. Analysts expected S&P 500 profits to grow 30.6% in the third quarter, with technology and energy companies expected to do the heavy lifting.
