S&P 500 futures rise as investors shift away from technology stocks

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S&P 500 futures rise

Highlights

S&P 500 futures rise 0.12% ahead of a losing week.
Nasdaq futures fall as AI spending concerns persist.
Inflation and Fed policy remain key market risks.

December S&P 500 futures rose 0.12% to 7,800.00, while Nasdaq-100 futures slipped 0.16% to 30,096.50. Dow Jones futures gained 0.10% to 52,483.00, reflecting continued divergence between technology stocks and the broader market, CNBC reports.

S&P 500 futures stabilize as technology shares weaken

Wall Street's main indexes finished higher Thursday, ending a three-session losing streak for the S&P 500 and Nasdaq Composite. The S&P 500 gained approximately 0.3%, the Nasdaq advanced 0.1%, and the Dow Jones climbed more than 500 points, or about 1.1%.

The rebound followed a shift away from heavily owned technology shares toward other sectors, including healthcare.

However, concerns about artificial intelligence spending continued to weigh on semiconductor manufacturers and data center operators.

CoreWeave fell 4.1% in premarket trading after recovering Thursday, while Micron Technology declined 1.7%. Broadcom slipped 0.5%, reflecting persistent doubts about whether AI-related investment will generate sufficient returns.

AI spending and inflation pressure market sentiment

Investors are increasingly questioning the debt accumulated by companies building AI infrastructure. Rising borrowing costs could complicate financing for data center operators whose profitability depends on sustained demand for computing capacity.

Micron was heading toward a weekly loss exceeding 9%, while CoreWeave faced a decline of approximately 15%.

Technology weakness has pushed the S&P 500 down nearly 1% for the week and the Nasdaq more than 2% lower. The Dow, supported by gains outside technology, remained on track for an advance of roughly 1%.

Inflation has added another concern. Recent U.S. wholesale and consumer price data exceeded expectations, reinforcing uncertainty about the Federal Reserve's interest rate outlook.

Fed Chair Kevin Warsh acknowledged the economic impact of substantial AI investment while highlighting its potential to increase inflationary pressures.

Earnings and Fed outlook set the next test

Friday's session will test whether investors continue moving away from AI-related stocks or return to technology shares after recent declines.

Tesla gained 4.4% in premarket trading following the unveiling of a redesigned Roadster, while lower oil prices offered some relief from inflation concerns.Investors are also awaiting quarterly results from Travelers and Citizens Financial, which could provide further insight into corporate earnings and economic conditions.

With the Federal Reserve increasingly expected to leave rates unchanged in October, attention remains focused on inflation, borrowing costs, and the financial sustainability of AI investment.

The contrast between rising Dow futures and falling Nasdaq futures suggests that market weakness remains concentrated in technology rather than spread evenly across U.S. equities.

We also reported Warsh eases fears of October Fed hike despite inflation risks.

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