Dow, S&P 500, Nasdaq futures mixed after sharp tech sell-off
US stock futures were mixed Wednesday morning after a sharp market downturn that saw all three major indexes close significantly lower in the previous session.
Dow Jones Industrial Average futures edged up 0.1%, while S&P 500 futures slipped 0.1%, News.Az reports, citing foreign media.
Nasdaq 100 futures fell about 0.3%, weighed down by a more than 3% decline in shares of AI chipmaker AMD. The company’s fourth-quarter guidance, while exceeding estimates, failed to impress investors.
On Tuesday, the Nasdaq Composite led the market slide, tumbling over 2% amid a broad sell-off in tech stocks. Palantir dropped nearly 8% despite reporting stronger-than-expected third-quarter results, as investors questioned whether the recent AI-fueled rally has outpaced fundamentals.
Concerns about an emerging AI bubble have grown in recent weeks, fueled by investor Michael Burry’s bearish bets against major players like Palantir and Nvidia. AMD’s underwhelming earnings outlook may add further pressure to sentiment in the tech sector.
On the data front, traders will look to the ADP private payrolls report on Wednesday for clues about the labor market, alongside updates on mortgage applications and ISM services activity. The government shutdown continues to stall economic releases, and it is poised to become the longest in history by Wednesday. In the latest development, the Trump administration is warning of "mass chaos" for travellers as officials look at closing airports.
Meanwhile, President Trump's tariffs face a key test Wednesday when the Supreme Court hears arguments in a case questioning his legal authority to impose his most sweeping duties. The high court's ultimate decision could have significant reverberations for the global economy.
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