Nasdaq futures edge lower as AI spending, Fed rate concerns weigh
Nasdaq futures fell more than 1% on Thursday as investors grew cautious over artificial intelligence valuations and the cost of financing AI infrastructure. This downturn follows a broader tech rout in Asia and the worst week for the NASDAQ Composite since late June. Market sentiment is weighed down by expectations of further US Federal Reserve interest rate hikes following hotter-than-expected inflation data, which has increased corporate borrowing costs and pressured the bonds of heavily indebted data-center operators.
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- ✓ Nasdaq futures fell more than 1% on Thursday.
- ✓ The NASDAQ Composite recorded its worst week since late June.
- ✓ SK Hynix shares dropped 10% during a technology selloff in Asia.
- ✓ Hotter-than-expected inflation data increased expectations for US Federal Reserve interest rate hikes.
What changed
Nasdaq futures dropped over 1% on Thursday amid deepening concerns over AI funding and debt.
Live updates
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Nasdaq futures decline as AI valuations and Fed rate fears mount
Nasdaq futures fell more than 1% on Thursday as investors grew cautious over artificial intelligence valuations and the cost of financing AI infrastructure. This downturn follows a broader tech rout in Asia and the worst week for the NASDAQ Composite since late June. Market sentiment is weighed down by expectations of further US Federal Reserve interest rate hikes following hotter-than-expected inflation data, which has increased corporate borrowing costs and pressured the bonds of heavily indebted data-center operators.
Why it matters
The semiconductor industry faces significant volatility as doubts grow regarding the long-term return on AI investments. While some firms report record earnings, macroeconomic uncertainties are prompting cautious outlooks for 2027. This shift suggests a potential correction in the valuation of AI-related assets.
What is confirmed
- Nasdaq futures fell more than 1% on Thursday.
- The NASDAQ Composite recorded its worst week since late June.
- SK Hynix shares dropped 10% during a technology selloff in Asia.
- Hotter-than-expected inflation data increased expectations for US Federal Reserve interest rate hikes.
Still unconfirmed
- The semiconductor industry may be headed for an almighty crash.
What to watch next
- Further US Federal Reserve decisions on interest rates
- Updated 2027 guidance from TSMC
- Financial reports from heavily indebted AI data-center operators
confidence 90%Sources used for this update (14)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- CNBC — SK Hynix shares plunge 10% amid Asia tech rout as Fed rate hike fears, AI funding worries mount
- finance.yahoo.com — US Stock Futures Fall as AI Valuation Concerns Offset ...
- The Economist — Is the semiconductor industry headed for an almighty crash?
- NBC News — Cracks are beginning to show in the stock market, as doubts grow about AI investments
- Bloomberg.com — Chip Stocks Set to Erase $1 Trillion in Value as Rout Deepens
- Investing.com — Nasdaq futures edge lower as AI spending, Fed rate concerns weigh
- finance.yahoo.com — Nasdaq futures edge lower as AI spending, Fed rate concerns weigh
- www.home.saxo — Asia Market Quick Take – 14 October, 2026 | Saxo
- www.abc.net.au — Markets live updates: ASX opens higher, Ampol refining margins double as oil slips from $US110/barrel
- www.kitco.com — Nasdaq futures fall 1% as AI rout deepens on debt concerns
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