Stock market futures fell earlier today as a broad technology sell-off deepened, putting major indexes on pace for weekly losses driven by mounting concerns over the rising cost of artificial intelligence infrastructure and expectations of higher interest rates.
Nasdaq 100 futures were down 0.66% on Friday morning, while S&P 500 futures slipped 0.16%, according to CNBC. The tech-heavy Nasdaq Composite is on track to end the week down 4.4%, while the broader S&P 500 is poised to finish 1.9% lower.
The sell-off accelerated after the Nasdaq Composite fell 2.2% on June 23, marking the start of a sharp downturn in technology stocks that has now extended to a four-day losing streak—the index’s first such streak since February, according to CNBC. The S&P 500 declined 1.4% the same day, with semiconductor stocks leading the decline globally.
Investors pulled back from major tech names on Thursday, with Apple sliding 6% after announcing price hikes on iPads and MacBooks due to rising memory and storage costs. Microsoft dropped more than 3% following announcements of higher Xbox console prices tied to surging component costs, while Alphabet and Meta also closed lower, according to CNBC.
The sell-off reflects two overlapping concerns: doubts about the sustainability of massive spending on artificial intelligence infrastructure and growing expectations that the Federal Reserve could raise interest rates. Tech companies have financed much of their AI buildout through debt, making higher borrowing costs a significant threat to profitability. Traders are increasingly pricing in the possibility of a second rate hike by December, according to market data cited in reporting on the sell-off.
The technology decline has spread globally. South Korea’s Kospi index fell 5.81% on Friday, while Japan’s Nikkei 225 dropped 4.15%, with SoftBank Group plunging more than 13% as semiconductor and chipmaker stocks tumbled across the region, according to CNBC. Even strong earnings from Micron Technology failed to reverse the broader tech rotation, as investors shifted capital into healthcare, financial, and industrial stocks.
Julia Hermann, global market strategist at New York Life Investment Management, told CNBC that semiconductor and memory chip leaders now represent a “structurally more volatile flavor of tech than we saw in the Magnificent Seven for the past several years.” She added that the repricing of Federal Reserve expectations has created an environment that is “a recipe for volatility.”
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Chris Martin is a US economics and current affairs journalist covering the intersection of policy, markets, and everyday financial life. With a background in financial reporting and a sharp eye for the stories behind the numbers, Chris brings clarity to some of the most complex issues shaping the American economy today. At ECIKS.org, Chris covers breaking developments across domestic economic policy, business strategy, Wall Street movements, and political decisions that ripple through financial markets. His reporting blends rigorous data analysis with accessible storytelling making critical information useful for investors, entrepreneurs, and engaged citizens alike.
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