U.S. stock futures slide as AI spending concerns weigh on tech

Traders Union
All News
Stocks
US stock futures slide on AI

Highlights

Nasdaq 100 E-minis fall 1.93% and S&P 500 E-minis drop 1.1% by 04:56 a.m. ET as tech stocks slide on AI spending concerns.
Brent crude rises over 3% to $112 a barrel after Houthi attacks in Saudi Arabia, deepening risk-off sentiment and fueling fears of broader Middle East conflict.
Tesla loses 5.3%, Meta falls 1.9%, and IBM drops 5.7% in premarket trading as corporate spending and capital allocation weigh on investor confidence.

Premarket selloff hits tech leaders

As reported by Reuters, Nasdaq futures slide more than 1% on Thursday after earnings from Tesla and Meta Platforms do little to ease investor concerns about heavy AI-related spending.

The weakness comes after a stronger session on Wednesday, when the tech-heavy Nasdaq leads Wall Street higher on robust results from SpaceX and Super Micro. By 04:56 a.m. ET, Dow E-minis are down 367 points, or 0.69%, S&P 500 E-minis fall 85.5 points, or 1.1%, and Nasdaq 100 E-minis lose 578.5 points, or 1.93%.

In premarket trading, SpaceX drops 2.3% and Super Micro falls 4.7% as attention shifts from earnings momentum to the mounting cost of AI investment. Tesla loses 5.3% after cutting its annual capital expenditure forecast, while Meta slips 1.9% after introducing new non-voting shares to help fund its AI push.

The broader group of large-cap growth stocks is also under pressure. Amazon.com declines 1.6% and Nvidia drops 2.4%, while chipmakers sell off across the board, with Intel down 5.1% and AMD, Qualcomm, Marvell Technology, Broadcom and Micron Technology falling between 2.9% and 5.3%.

Oil rebound deepens risk-off mood

Rising energy prices add to the cautious tone in markets. Brent crude climbs more than 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia fuel concerns about supply disruptions and a wider Middle East conflict.

Investors move toward safer assets, pushing the 10-year Treasury yield down to around 5.085%. Bitcoin falls 3.4%, reflecting the broader retreat from risk as markets respond to both geopolitical tension and questions over corporate spending discipline.

Later on Thursday, earnings from Spotify, Blackstone, American Airlines and Honeywell International are expected to provide a wider view of corporate performance across sectors. IBM also falls 5.7% despite raising its annual software revenue forecast and reporting third-quarter results above Wall Street expectations.

In our earlier report on the AI-linked tech selloff, we explained how hotter inflation data and rising yields intensified fears that higher interest rates would make it harder for companies to finance massive AI spending. We also highlighted renewed pressure on AI-exposed names such as CoreWeave and Oracle, alongside weakness in major chipmakers, as investors shifted into a more cautious, risk-off stance ahead of key U.S. economic releases.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.