Nasdaq Futures Slide Over 2% as Nvidia Drops Nearly 3%
NVDA•Nasdaq futures fell over 2% as investors weighed expectations of a total 50 bp Fed rate hike by year-end and rising costs of debt-financed AI infrastructure spending, with Nvidia futures dropping nearly 3%. Ballooning valuations and elevated borrowing costs are intensifying selloff pressure on AI-related megacaps and semiconductor equities.
1. Premarket Tech Selloff
NASDAQ 100 E-minis tumbled 2.69% premarket, leading broader Wall Street futures declines as tech names sold off. Nvidia futures slid nearly 3%, joining other chipmakers in sharp early losses.
2. Fed Rate Hike Outlook
Traders now price in a cumulative 50 bp Fed rate increase by December, up from earlier expectations of 25 bp, boosting short-term Treasury yields. Higher borrowing costs are placing additional valuation pressure on high-growth technology stocks.
3. Debt-Financed AI Spending Concerns
Rising interest rates are increasing financing expenses for AI infrastructure projects, potentially narrowing margins for Nvidia and peers. Recent bond issuances supporting AI buildouts have reignited investor worries over mounting corporate debt levels in the megacap sector.
