US stock futures pointed to a sharply lower open on Thursday, with the Nasdaq 100 sliding 1.26% as the global sell-off in artificial intelligence-linked shares intensified. S&P 500 futures fell 0.35%, while Dow futures gained 0.39%, reflecting a divided market. The pressure follows Wednesday's 1.9% decline in the Nasdaq, triggered by hotter-than-expected inflation data that revived fears of further Federal Reserve rate hikes.
AI rout spreads from Wall Street to Asia
Premarket trading saw Nvidia drop 1.3%, AMD lose 1.9%, and Micron fall 4%. CoreWeave slipped another 4.5% after Wednesday's 15% plunge, while Oracle declined 2%. The stress has extended into credit markets, with CoreWeave bonds yielding more than 15%, raising concerns that debt-heavy AI infrastructure companies may struggle to finance expansion at acceptable returns. Asia amplified the warning overnight: South Korea's KOSPI plunged nearly 8%, and Japan's Nikkei 225 fell about 5%.
PPI and retail sales could reshape Fed expectations
Thursday's 8:30 am ET data release includes September producer prices, retail sales, weekly jobless claims, and regional manufacturing surveys. Economists expect headline PPI to rise 0.6% month over month and core PPI to gain 0.3%. Fifth Third economist Bill Adams noted that another strong wholesale inflation reading could tip the balance toward an October Fed increase, especially as elevated energy costs threaten to keep price pressures persistent.
TSMC posts record profit, but investors want reassurance
Taiwan Semiconductor Manufacturing Co. reported a record third-quarter net profit of NT$763.1 billion, up 69% year over year and above the NT$746.3 billion LSEG SmartEstimate. The company expects fourth-quarter revenue of $52.3 billion to $54.3 billion and sees 2026 sales growth of about 44%. However, management is planning cautiously for 2027 due to macroeconomic uncertainty and weakness in price-sensitive consumer markets.
Charles Schwab leads Thursday's financial earnings
Charles Schwab joins BNY, US Bancorp, and PNC in the next wave of financial-sector earnings. FactSet expects Schwab to report adjusted earnings of $1.65 per share on $7.18 billion in revenue, up from $1.31 and $6.13 billion a year earlier. Investors will focus on asset gathering, deposits, and trading activity after Schwab reported record August core net new assets.
Brent's 2% fall gives inflation-sensitive stocks breathing room
Brent crude fell about 2% to $103.80 as traders weighed potential US sanctions relief against continuing attacks around the Strait of Hormuz. The decline matters after Wednesday's CPI shock because cheaper energy could eventually ease headline inflation pressure, offering some relief to sectors sensitive to input costs.
This article is for informational purposes only and does not constitute financial advice.
