Nasdaq-100 futures fell sharply Thursday as concerns grow that tech companies were overspending on artificial intelligence.
Tech-heavy benchmark contracts fell 1.1%. S&P 500 futures slipped 1%, while Dow Jones Industrial Average futures gained 0.3%.
Among the biggest market movers, CoreWeave shares fell more than 5% in premarket trading, extending Wednesday’s 15% loss. The decline follows Nvidia’s announcement earlier this year of an expanded relationship with CoreWeave. The deal included a $2 billion investment by Nvidia in CoreWeave stock. CoreWeave also committed to using Nvidia’s technology to build more than 5 gigawatts of AI factories by 2030.
Many other AI-linked stocks fell on Thursday. Micron shares slid 3.7%, while SanDisk fell 4%. SK Hynix dropped 7%.
The slide comes amid concerns that the Federal Reserve could tighten monetary policy more aggressively before year-end, continuing to weigh on equities, following new data showing that consumer prices rose faster than expected year over year in September.
Oil prices declined Thursday. Brent crude for December delivery fell 1.5% to $104.52 a barrel, while U.S. West Texas Intermediate futures for November were unchanged at $94.15 per barrel.
By CEO NA Editorial Staff
