U.S. tech stocks declined for a third consecutive day as futures fell amid broader market uncertainty. Moreover, investors reacted to losses in Nvidia and Oracle, signaling caution in high-value AI-related equities. These declines added pressure ahead of key economic data releases.
S&P 500 futures fell 0.3%, while Nasdaq-100 futures dropped 0.4%. Futures tied to the Dow Jones Industrial Average fell 49 points, or 0.1%. Nvidia and Oracle both lost ground in premarket trading, sliding almost 1% and 2% respectively. Consequently, the two companies fell for a third straight day amid ongoing concerns over AI valuations and risky recent deals.
Declines in Nvidia, Oracle, and Micron Technology contributed to major averages closing lower for a second day. Furthermore, investors remain cautious about high valuations in the AI and technology sectors. Weekly jobless claims data also drew attention, providing insights into labor market trends and potential Federal Reserve actions.
Fed Chair Jerome Powell emphasized that a slowing labor market outweighs stubborn inflation concerns. He highlighted that the “less dynamic and softer labor market” increases downside employment risks. Nevertheless, Salvatore Ruscitti, U.S. equity strategist at MRB Partners, stated that the current hiring slowdown is unlikely to trigger widespread layoffs. Therefore, moderate changes in jobless claims may not provoke a strong equity market reaction.
Investors also watched for developments in the personal consumption expenditures price index and the potential risk of a government shutdown. Bank of America economist Stephen Juneau said that funding deadlines increase uncertainty. A shutdown could lead to federal employee reductions, according to the Office of Management and Budget.
Meanwhile, Chewy received an upgrade from MoffettNathanson, raising its price target to $48. The rating increase reflects a recovery in U.S. pet household formation and growing customer net additions. As a result, Chewy shares rose more than 1% after the upgrade.
Intel shares also gained 1.6% in after-hours trading as reports surfaced about early-stage investment talks with Apple. These discussions follow Nvidia’s $5 billion investment in Intel for data center and PC chip co-development. Additionally, the U.S. government facilitated a 10% stake in Intel to strengthen private-sector collaboration.
Overall, U.S. tech stocks face pressure from AI-related declines, labor market uncertainty, and regulatory and investment developments. Moreover, investors are closely monitoring economic data and corporate strategies to guide decision-making.
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