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US Stock Futures Swing Lower Following Hot Inflation Data and Tech Decline

BearishHigh impact
SPX7,741.14 −0.82%

US stock index futures moved lower on Wednesday following hotter-than-expected inflation data and continued volatility in the artificial intelligence infrastructure sector. Futures contracts for the S&P 500 (SP:SPX) and Dow Jones Industrial Average dropped 0.3%, while Nasdaq 100 futures fell nearly 1% premarket.

The decline was driven by headline and core inflation prints that solidified market expectations for another interest rate hike from the Federal Reserve this year. Semiconductor stocks led losses after ASML Holding (ASML) indicated it could not keep pace with fabrication demand, and Chinese rivals introduced competitive products. Advanced Micro Devices (AMD) and Intel (INTC) lost 2%, while Dell Technologies (DELL), SanDisk, and Palo Alto Networks (PANW) slid over 3%.

In contrast, financial firms provided a rare bright spot. Morgan Stanley (MS) rose 1% after equity trading revenue topped forecasts, while BlackRock (BLK) edged higher as strong capital inflows boosted fee revenue in its asset management business.

Key points

  • S&P 500 and Dow futures dropped 0.3%, while Nasdaq 100 futures fell nearly 1%.
  • Headline and core inflation figures solidified expectations for another Federal Reserve rate hike this year.
  • Chipmakers extended weekly losses as ASML reported supply constraints and Chinese rivals launched new products.
  • Pre-market decliners included AMD and Intel down 2%, with Dell, SanDisk, and Palo Alto Networks sinking over 3%.
  • Morgan Stanley rose 1% on strong equity trading, while BlackRock gained on increased asset management inflows.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why are US stock futures falling today?

Stock futures fell after headline and core inflation figures came in higher than expected, strengthening forecasts that the Federal Reserve will raise interest rates again this year, while tech stocks continued to experience volatility.

Why did tech and semiconductor stocks drop premarket?

Chipmakers fell after ASML reported it could not meet fabrication demand and Chinese competitors introduced products approaching US and Korean capabilities. As a result, AMD and Intel dropped 2%, while Dell, SanDisk, and Palo Alto Networks sank over 3%.

Which financial stocks rose despite the market downturn?

Morgan Stanley gained 1% after equity trading revenue beat expectations, and BlackRock edged higher as strong capital inflows boosted fee revenue in its asset management division.