Wall Street Woes: Tech Stocks Tumble as Fed Voices Add Uncertainty

U.S. stock index futures fell, reflecting a potential selloff on Wall Street triggered by Federal Reserve comments casting doubt on an interest rate cut in December. The major stock indexes experienced significant declines due to concerns over valuations in the tech sector, amid an economic data drought from a historic government shutdown.

U.S. stock index futures dipped on Friday, indicating a new wave of selling on Wall Street. This comes after Federal Reserve officials made comments that fueled uncertainty over a December interest rate cut, shaking investor confidence.

The primary U.S. stock indexes registered their most substantial one-day drop in over a month on Thursday, primarily driven by significant losses in tech stocks. This downturn was fueled by Fed policymakers expressing skepticism on further easing policies, leading to more selloffs in technology and AI stocks as investors fret over potentially inflated valuations.

The market volatility was highlighted by the CBOE fear gauge hitting a one-week high. On the macroeconomic front, doubts linger following the recent end of a U.S. government shutdown, with significant data gaps hindering economic forecasts. Meanwhile, shares of chipmaker companies fell amid U.S. export control concerns, while entertainment stock Warner Bros Discovery gained under renewed corporate strategy discussions.

(With inputs from agencies.)