U.S. stock futures steady after Nasdaq posts worst day since June

Investing.com-- U.S. stock futures were little changed on Thursday evening after Wall Street ended sharply lower, with the Nasdaq Composite posting its steepest daily decline since June amid concerns over the cost and financing of artificial intelligence investments.

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S&P 500 Futures traded largely flat at 7,707.0 points, while Nasdaq 100 Futures fell 0.2% to 29,083.75 points by 20:10 ET (00:10 GMT). Dow Jones Futures edged up 0.1% to 53,133.0 points.

In the regular session, the NASDAQ Composite fell 2.6% to 26,008.86, while the S&P 500 lost 1.2% to 7,663.43. The Dow Jones Industrial Average ended flat at 52,867.98, as investors shifted away from growth-oriented technology stocks toward more defensive sectors.

The selloff reflected growing scrutiny of the massive capital spending required to develop AI infrastructure, even as companies report strong demand for computing capacity and AI-related services.

Meta Platforms (NASDAQ:META) shares tumbled nearly 7% after the Facebook parent reported its first cash outflow in more than a decade, driven by AI-related expenditure, and announced plans to issue non-voting shares to help finance its growth.

Although quarterly revenue beat analysts' expectations, the company's spending plans heightened concerns about the returns on its investments.

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Tesla (NASDAQ:TSLA) shares fell about 3.1% after the electric-vehicle maker cut its 2026 capital expenditure forecast, adding to uncertainty over the pace of its AI and robotics expansion.

Semiconductor stocks were hit particularly hard, with the Philadelphia Semiconductor Index dropping 6.7%, its biggest daily decline since June 23.

The selloff also hit AI-related infrastructure companies, including CoreWeave Inc (NASDAQ:CRWV), highlighting concerns over financing costs and the time required to generate returns from heavy investment.

Oil prices added to the uncertain outlook. Brent crude settled up 4% at $113.17 a barrel, its highest since May 4. Fresh Houthi attacks in Saudi Arabia fuelled concerns about disruptions to Middle Eastern energy supplies, raising the prospect of renewed inflationary pressure.

Investors sought safety in government bonds, sending the benchmark 10-year U.S. Treasury yield down nearly 20 basis points to around 4.95%, its biggest daily decline since March 2023. The move reflected a shift toward safer assets amid concerns about technology valuations and geopolitical risks.

Despite the technology rout, corporate earnings offered some support. Procter & Gamble (NYSE:PG) rose after reporting better-than-expected quarterly results, while Spotify (NYSE:SPOT) gained on a stronger operating income outlook.

Investors will now look for further earnings updates and fresh economic data to gauge whether the technology selloff signals a broader reassessment of growth prospects or a temporary correction in AI-related shares.

The Federal Reserve's policy decision next week will also be in focus, particularly as higher energy prices threaten to complicate the inflation outlook.

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