Megacap tech stocks weigh on US equities, with Nasdaq futures falling 1.9% amid skepticism over AI spending returns.
US stock futures extended losses as tech shares led declines, with S&P 500 futures down 1% and Nasdaq futures dropping 1.9%. The broader S&P 500 closed 0.4% lower despite seven of 11 sectors posting gains, highlighting the outsized impact of megacap tech stocks.
Investor sentiment has shifted from last year’s AI-driven euphoria to a focus on profitability. Companies like Alphabet and SpaceX, which recently raised $75 billion in its IPO, face scrutiny over cash flow and returns on infrastructure spending. The rotation reflects growing caution in the sector.
Markets now await Micron’s earnings report tomorrow, which could provide further direction for chipmakers and tech valuations.