U.S. stock futures steady after Nasdaq posts worst day since June

U.S. stock futures remained relatively unchanged on Thursday evening following a significant decline in Wall Street, with the Nasdaq Composite experiencing its biggest daily drop since June. This downturn was primarily attributed to worries surrounding the expenses and financing of artificial intelligence investments. The S&P 500 Futures held steady at 7,707.0 points, while the Nasdaq 100 Futures saw a slight 0.2% decrease to 29,083.75 points by 20:10 ET (00:10 GMT). Meanwhile, the Dow Jones Futures increased by 0.1% to 53,133.0 points.

In the prior trading session, the NASDAQ Composite experienced a 2.6% decline, reaching 26,008.86, whereas the S&P 500 experienced a 1.2% drop, settling at 7,663.43. The Dow Jones Industrial Average closed flat at 52,867.98 as investors moved away from growth-focused technology stocks and towards more stable sectors. The decline reflected heightened concern over the substantial capital investment needed for AI infrastructure, even as companies reported robust demand for computing power and AI-related services.

Meta Platforms (NASDAQ:META) shares plummeted nearly 7% following the social media giant revealing its first cash outflow in over a decade, which was attributed to AI-related spending, and announced intentions to issue non-voting shares to fund its growth. Although the company's revenue exceeded analyst expectations, the spending plans raised questions about the returns on its investments.

Tesla (NASDAQ:TSLA) shares declined about 3.1% after the electric vehicle manufacturer revised its 2026 capital expenditure forecast, adding to the uncertainty regarding the speed of its AI and robotics expansion. Semiconductor stocks were significantly impacted, with the Philadelphia Semiconductor Index plummeting 6.7%, marking its largest daily decline since June 23.

The downturn also affected AI-related infrastructure companies, such as CoreWeave Inc (NASDAQ:CRWV), underscoring concerns over financing costs and the time needed to reap returns from substantial investments. Oil prices contributed to the ambiguous outlook, as Brent crude rose 4% to $113.17 a barrel, marking its highest point since May 4.

The recent Houthi attacks in Saudi Arabia heightened concerns about disruptions to Middle Eastern energy supplies, potentially reigniting inflationary pressures. Investors turned to government bonds for safety, causing the benchmark 10-year U.S. Treasury yield to fall almost 20 basis points to around 4.95%, its largest daily decline since March 2023.

This movement indicated a shift towards safer assets due to apprehensions about technology valuations and geopolitical risks. Despite the setback in the technology sector, corporate earnings provided some relief. Procter & Gamble (NYSE:PG) increased in value following the release of better-than-anticipated quarterly results, while Spotify (NYSE:SPOT) rose due to a stronger operating income outlook.

Investors are now eagerly awaiting additional earnings reports and fresh economic data to determine whether the technology sell-off signifies a broader reassessment of growth prospects or a temporary correction in AI-related shares. The Federal Reserve's policy decision next week will also be closely monitored, especially as higher energy prices could complicate the inflation outlook.