Futures tracking the Nasdaq 100 led Wall Street lower on Thursday after Nvidia shares plunged on reports that its board was weighing the ouster of chief executive Jensen Huang, souring sentiment toward AI-linked stocks. The chipmaker dropped 6 percent in premarket trading, and the selling spread across the sector.
Why it matters
At 5:32 a.m. Eastern Time, Dow e-minis were up 61 points, or 0.12 percent, while S and P 500 e-minis fell 24.25 points, or 0.31 percent, and Nasdaq 100 e-minis slipped 181 points, or 0.64 percent. The split shows the crisis is concentrated in technology, with the Dow holding up because it is less exposed to chipmakers.
Chipmakers Intel, Marvell Technology and Micron fell between 1.9 percent and 2.8 percent, while AI infrastructure firm CoreWeave dropped about 6 percent. The selling followed a strong Wednesday session, when the S and P 500 gained 1.31 percent and the Nasdaq rose 1.60 percent on CoreWeave earnings.
What happens next
Investors are also gearing up for the release of the Producer Price Index on Friday, which could help shape inflation expectations after data earlier this week showed consumer prices rose more than expected last month. The data will be the last major inflation reading before the Federal Reserve meeting in December.
For now, the futures point to a weak open for technology and a steady one for the wider market. Whether the selling stays contained to chips will be decided when Wall Street opens, and the first real test of the Nvidia fall will come in the opening hour.
The selling followed a strong Wednesday session, when the S and P 500 gained 1.31 percent and the Nasdaq rose 1.60 percent on CoreWeave earnings. By Thursday morning, the focus had shifted to the Nvidia board and the question of who runs the company at the centre of the boom. Chipmakers Intel, Marvell Technology and Micron fell between 1.9 percent and 2.8 percent, while AI infrastructure firm CoreWeave dropped about 6 percent. Investors are also gearing up for the Producer Price Index on Friday, which could help shape inflation expectations after consumer prices rose more than expected last month. The open will show whether the selling stays contained to technology or spreads wider.
