Nasdaq futures slip on chip weakness; S&P 500 holds gains
QQQ•Nasdaq 100 futures fell 0.51% as Qualcomm dropped 9.6% after missing fourth-quarter smartphone chip sales estimates, while S&P 500 futures rose 0.2% and Dow futures gained 0.62%. Chip and data center-related stocks remained under pressure after the Democrats' midterm election victory.
1. Chip stocks retreat
Nasdaq futures fell on Thursday as chip and data center-related stocks remained under pressure, while S&P 500 futures extended gains. Qualcomm dropped 9.6% in premarket trading after its fourth-quarter smartphone chip sales fell short of estimates amid sluggish demand and declining Apple-related revenue. Nvidia fell 0.8%, Marvell Technology lost 3.4% and Intel slipped 2%.
2. Data center concerns
UBS strategists said pauses in data center projects could slow buildout through 2028, with about 30% of expected additions that year at risk of being affected. Data center operators IREN, Hut 8 and Applied Digital fell between 1.1% and 2.7%, while CoreWeave and Nebius Group each lost 3%. Utilities and equipment suppliers exposed to the data center boom, including GE Vernova and Constellation Energy, also traded lower.
3. Other market moves
At 7:04 a.m. ET, Dow futures were up 0.62%, S&P 500 futures were up 0.2% and Nasdaq 100 futures were down 0.51%. Amazon, Meta Platforms and Alphabet rose more than 1%. Investors were also looking ahead to the October jobs report due Friday and remarks from several Federal Reserve officials.
