US stock futures retreated on Thursday after chipmaker Micron’s (MU) prospects put a dent in tech rally hopes, as investors brace for new economic data ahead of inflation data that will shape US policy. Federal Reserve.
S&P 500 futures () fell about 0.2% after rising on Wednesday to close not far from a new record high. Futures on the Dow Jones Industrial Average () and the tech-heavy Nasdaq 100 () also fell about 0.2%.
Shares are struggling in the wake of Micron’s current quarter sales forecasts, which met expectations but failed to satisfy investors looking for stellar performance from AI-linked companies.
Bullishness around AI has helped push the benchmark S&P 500 (^GSPC) to a 15% gain this year. But concerns are growing that the rally could be in jeopardy if the handful of technology companies driving most of those gains fail to beat already-lofty expectations.
Shares of memory maker Micron fell almost 6% in pre-market trading. Nvidia (NVDA) fell 1.6%, reviving concerns about a return to the sell-off that roiled markets last week as other AI chip stocks came under pressure.
The focus is also on updates on GDP and weekly unemployment claims due before the market opens, a day before Friday’s PCE inflation, which will influence the Fed’s thinking on the timing of rate cuts. A continued increase in unemployment claims would reinforce growing concerns about the weakening labor market.
Inflation could also get big Thursday night during the first debate between President Joe Biden and former President Donald Trump.
On the corporate front, shares of Levi Strauss ( LEVI ) fell more than 15% in the wake of a second-quarter sales loss for the jeans retailer. Investors will look to Nike’s (NKE) quarterly results after the bell for more clues to consumer resilience.
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