Nasdaq futures fall 1% as AI rout deepens on debt concerns
SPY•Nasdaq futures fell 1.1% as concerns about higher interest rates and AI funding deepened the selloff in technology 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 hit AI funding drove Nasdaq futures down more than 1% on Thursday, following the Nasdaq and S&P 500’s biggest one-day drops since July on Wednesday. CoreWeave fell 6.3% in premarket trading after a 15% drop, while Oracle lost 2.1% after falling nearly 9% in the previous session. Their bond yields reached record highs.
2. Rate expectations rise
TSMC struck a cautious note for 2027 over macroeconomic uncertainties despite reporting its sixth consecutive record quarterly profit. Nvidia fell 1.8%, Micron Technology dropped 3.7% and Advanced Micro Devices lost 2.3%. 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 quarter-point hike in December.
3. Economic data ahead
Investors were watching for producer prices data, September retail sales and initial jobless claims. The Nasdaq had fallen more than 3% from the record high it reached the previous week. Analysts expected S&P 500 third-quarter profits to grow 30.6%, based on LSEG data.
