Nasdaq Futures Drop as Technology Stock Sell-off Deepens

Stock index futures traded mixed on Thursday as technology shares extended a recent sell-off, putting heavy pressure on Nasdaq futures NASDAQ:NDX. Nasdaq futures fell 1.25%, while S&P 500 futures slipped 0.32% and Dow futures gained 0.45%. Technology and hardware companies led the market lower, with Sandisk dropping 4.73%, Western Digital falling 4.42%, Lumentum losing 3.71%, Corning declining 3.49%, and Seagate Technology shedding 3.32%. Meanwhile, non-technology shares saw gains, with Bank of New York Mellon rising 2.30% and Regions Financial advancing 1.90%.

The market weakness stems from intensifying investor concerns surrounding artificial intelligence valuations and elevated financing costs. The pullback in technology equities was felt globally, as South Korea's stock benchmark tumbled 8.34% to around 5,540, extending a seven-session losing streak to reach its lowest level since late July. In government bond markets, Treasury yields dropped across maturities, with the 2-year yield falling 7.2 basis points to 4.74% and the benchmark 10-year yield dropping 9.4 basis points to 5.09%.

Market participants are turning their focus to upcoming economic reports and Federal Reserve commentary. Economic releases on the calendar include the September Producer Price Index, which is expected to show a 0.5% monthly increase and a 5.4% annual rise driven by energy costs. Investors will also track retail sales figures, the Philadelphia Fed Manufacturing Index, the Fed balance sheet update, and a fireside chat with Federal Reserve Chair Kevin Warsh before the International Monetary Fund annual meeting.