Nasdaq futures sink as AI doubts resurface and oil jumps
QQQ•Nasdaq 100 futures fell 1.72%, S&P 500 futures dropped 1.04% and Dow futures lost 0.69% as concerns about AI investment returns weighed on growth stocks. Brent crude rose more than 2.8% to $111.92 a barrel.
1. AI doubts hit growth stocks
Nasdaq futures fell nearly 2% as earnings from Tesla and Meta did little to ease doubts about the AI outlook, while a rebound in oil added to market jitters. SpaceX fell 1.9% and Super Micro declined 3.1% in premarket trading, as investors focused on rising investment costs and unclear timelines for returns.
2. Shares and futures retreat
Tesla fell 3.6% after cutting its annual capital expenditure forecast, and Meta slipped 2% after introducing new non-voting shares to help fund its AI expansion. Amazon declined 1.8% and Nvidia fell 1.9%; chip stocks including Intel, AMD, Qualcomm, Marvell Technology, Broadcom and Micron also dropped. At 7:10 a.m. ET, Dow futures were down 0.69%, S&P 500 futures 1.04% and Nasdaq 100 futures 1.72%.
3. Oil and other movers
Brent crude climbed more than 2.8% to $111.92 a barrel after further Houthi attacks in Saudi Arabia raised supply-disruption concerns. The 10-year yield fell to around 5.0648%, while the CBOE Volatility Index rose 1.57 points to 18.25. IBM fell 4.7% despite raising its annual software revenue forecast and reporting third-quarter results ahead of expectations; Blackstone and American Airlines also declined.
