Pre-Market Update: Nasdaq Futures Drop as AI Rally Fades and Chip Stocks Slide

TLDR

Nasdaq 100 futures fell 0.6%, S&P 500 futures down 0.2%, Dow futures up 0.2% TSMC posted record Q2 revenue but warned of higher prices, sending chip stocks lower UnitedHealth and GE Aerospace both beat Q2 earnings expectations US-Iran tensions continue after fresh airstrikes on Wednesday Retail sales and jobless claims data due at 8:30 a.m. ET

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US stock futures were mixed Thursday morning as the AI trade lost momentum for a second straight day, putting pressure on tech stocks heading into the open.

Nasdaq 100 futures dropped 0.6%, while S&P 500 futures slid 0.2%. Dow Jones futures managed a small gain of around 0.2%, or 104 points.

E-Mini S&P 500 Sep 26 (ES=F)

All three major indexes closed higher on Wednesday, helped by cooler-than-expected wholesale inflation data. But those gains are now being tested as investors weigh whether the AI boom has more room to run.

Chip Stocks Under Pressure After TSMC Earnings

Taiwan Semiconductor Manufacturing Company reported record second-quarter revenue and raised its capital spending outlook for the year. Despite the strong numbers, the stock fell in premarket trading.

The company warned of higher prices, which spooked investors already watching chip valuations closely. Semiconductor stocks have now fallen for two straight sessions.

Markets have been cycling through risk-on and risk-off sentiment as investors question how long AI spending will justify current stock prices.

UBS Global Wealth Management CIO Mark Haefele offered a more optimistic view. “Earnings should remain the key driver of performance for the remainder of the year,” he said, adding that another strong set of results is expected in the coming weeks.

UnitedHealth beat Q2 expectations, as did GE Aerospace, both reporting before the opening bell Thursday. Netflix is due to report after the close.

US-Iran Tensions Add to Market Uncertainty

Oil markets were also unsettled Thursday. Brent crude slid 0.6% to $84.37 a barrel, while West Texas Intermediate fell 0.2% to $79.50 a barrel.

Investors are watching the Strait of Hormuz closely after the US launched fresh airstrikes on Iran on Wednesday. The Wall Street Journal reported that President Trump was briefed on options to expand the conflict, including increased bombing and possible ground forces.

The dollar held steady against a basket of peers. The 10-year Treasury yield edged up two basis points to 4.57%.

On the economic data front, retail sales figures and weekly jobless claims are both due at 8:30 a.m. ET. These numbers could shift market direction heading into the afternoon.

Netflix earnings after the close will be closely watched as a gauge of consumer spending and streaming demand.

The broader earnings season has started well, and analysts say that positive results from major companies could limit any sustained selloff in equities.

Despite the morning dip in futures, analysts say the macroeconomic backdrop remains supportive for stocks overall.

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