S&P 500, Nasdaq set for lower open as AI stocks slide on debt concerns
SPY•The S&P 500 and Nasdaq were set to fall as AI-linked stocks slid amid concerns about interest rates and debt financing. Producer prices rose 6.3% through September, above the 5.3% expected, while S&P 500 futures fell 0.27% and Nasdaq 100 futures dropped 1.18%.
1. AI stocks extend losses
The S&P 500 and Nasdaq were on track to extend losses as concerns about higher interest rates and financing for AI investments deepened a selloff in AI-linked stocks. The indexes had their biggest one-day fall since July on Wednesday after hotter-than-expected inflation data fueled expectations of further Federal Reserve rate hikes.
2. Debt and chip pressures
CoreWeave fell 3.2% in premarket trading after dropping 15% on Wednesday, while Oracle slipped 1.6% following a nearly 9% decline in the previous session. Nvidia fell 1.7%, Micron Technology dropped 4.3% and Advanced Micro Devices lost 3.1%. The broader chip index has fallen more than 11% over six sessions, losing $1.64 trillion in value.
3. Economic data and futures
The Producer Price Index rose 6.3% through September, compared with economists’ 5.3% estimate, and retail sales rose more than anticipated. At 8:41 a.m. ET, Dow futures were up 0.4%, S&P 500 futures were down 0.27% and Nasdaq 100 futures were off 1.18%. The VIX reached a two-week high.
