US equity futures edge lower on tech weakness
US equity-index futures are lower on Monday, with S&P 500 futures down 0.3%, Nasdaq futures down 1% and Dow futures marginally lower amid tech weakness and a deteriorating macro backdrop.
Futures tracking US equity indices were lower on Monday, holding losses from the previous week amid tech weakness and persistent pressure from a deteriorating macroeconomic backdrop.
Contracts for the S&P 500 dropped 0.3%, while the Nasdaq fell 1% and the Dow inched marginally lower.
Oil prices eased but remained elevated as the US pledged to isolate Iran economically.
This added to lingering concerns of elevated inflation as high energy prices magnified the impact of high deficit spending and Treasury intervention to buy back bonds.
AI infrastructure stocks led the losses on persistent uncertainty over the outlook on returns in the sector, with support from incoming LLM developer IPOs offsetting concerns that capital expenditure on chips has been overdone.
Micron, Marvell, and Sandisk were between 3.5% and 5% down premarket.
Meanwhile, Nvidia was flat ahead of its earnings on Wednesday after the bell, the next catalyst for the AI trade.