U.S. stock futures fell over tech spending concerns
U.S. stock futures fell Friday as Amazon’s AI spending plans and Intel’s cash-burn warning heightened concerns about the cost of AI infrastructure and returns. Bloomberg reported Nasdaq 100 futures fell more than 2% and S&P 500 contracts dropped 1%. Amazon fell 7.4% in U.S. premarket trading, while Intel plunged 25%.
More context
U.S. stock futures fell Friday as Amazon’s planned continued heavy AI spending and Intel’s warning of cash burn this year heightened concerns about AI infrastructure costs and when investments will pay off. Nasdaq 100 futures sank more than 2%, while S&P 500 contracts fell 1%, Bloomberg reported. Amazon shares dropped 7.4% and Intel shares 25% in U.S. premarket trading. Bloomberg said the losses extended a second day of futures declines and a rotation out of technology stocks, amid signs that major U.S. technology companies’ core businesses were slowing as they invested in AI. Reuters said technology and communication services were the only S&P 500 sectors headed for monthly losses; communication services was on track for its worst month since April 2022. LSEG data showed expectations that the Federal Reserve would raise rates by more than 50 basis points by mid-2027.
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Verifier’s note
Bloomberg reports Nasdaq futures falling more than 2% after Amazon and Intel earnings, with Intel plunging 25%; Reuters independently reports a futures slide amid AI-spending concerns tied to Amazon and Intel. Both are same-day reports consistent with the proposed event.