Nasdaq 100 futures dropped 1.8% and S&P 500 futures fell 1% as investors grew skeptical about the return on massive AI infrastructure spending. The sell-off was triggered by divergent earnings reports from Meta, which raised its capital expenditure plan after beating revenue expectations, and Tesla, which cut spending. Chip equipment maker Lam Research plunged more than 7% following weaker-than-expected guidance, dragging down the broader semiconductor sector.
Mounting concerns that data center and computing investments may take longer to generate returns have fueled risk-off sentiment across global markets. U.S. Treasuries strengthened, with the 10-year yield falling 4 basis points to 5.08%, while Brent crude broke above $112 per barrel. The European Stoxx 600 index declined 1%, pressured partly by Hermès shares dropping over 5% after the luxury retailer reported no growth in regional sales including China.
AI ROI Concerns Trigger Risk-Off Sell-Off; Nasdaq Futures Drop 1.8%
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