US stock futures fell on Thursday after chipmaker Micron’s (MU) outlook dented hopes for a rise in technology stocks, while investors braced for new economic data ahead of an inflation reading that is key to Federal Reserve policy.
S&P 500 futures fell nearly 0.2%, after rising on Wednesday to close near a new all-time high. Futures for the tech-heavy Dow Jones Industrial Average ( ) and Nasdaq 100 ( ) also fell about 0.2%.
Shares are struggling in the wake of Micron’s sales forecast for the current quarter, which met expectations but failed to satisfy investors looking for stellar outperformance from AI-related companies.
The bullish trend around artificial intelligence has helped lift the S&P 500 (^GSPC) to a 15% gain this year. But concerns are growing that the rally could be in jeopardy if the group of technology companies driving most of these gains stops beating already high expectations.
Shares of memory maker Micron fell nearly 6% in premarket trading. Nvidia (NVDA) stock fell 1.6%, reviving fears of a return to the sell-off that rocked markets last week, as other AI chip stocks came under pressure.
Also in focus are GDP updates and weekly jobless claims due before the market opens, a day before Friday’s personal consumption expenditures inflation reading that will influence the Federal Reserve’s thinking on the timing of interest rate cuts. A sustained rise in jobless claims could add to growing concerns about a weakening labor market.
Inflation could also loom large in the first debate between President Joe Biden and former President Donald Trump on Thursday night.
On the corporate front, shares of Levi Strauss ( LEVI ) fell more than 15% in the wake of the jeans retailer’s second-quarter revenue loss. Investors will look to Nike’s (NKE) quarterly results after the bell for further signs of consumer resilience.
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