US STOCKS-Nasdaq futures drop over 1% as AI worries resurface, oil climbs

Nasdaq futures slid more than 1% on Thursday as high-growth stocks faced renewed pressure after earnings from Tesla and Meta Platforms did ‌little to allay concerns over AI spending, while a rebound in oil prices further dampened sentiment.

The weakness follows a strong session on Wednesday when the tech-heavy Nasdaq led Wall Street higher as robust results from SpaceX and Super Micro ‌rekindled optimism around AI-linked stocks. SpaceX dropped 2.3% and Super Micro fell 4.7% in premarket trading on Thursday as ‌investors shifted their focus from earnings to the mounting cost of the AI buildout.

Tesla fell 5.3% after the electric-vehicle maker cut its annual capital expenditure forecast, raising questions about the pace of its AI and robotics expansion. Meta's shares slipped 1.9% after the social ⁠media giant introduced ​new non-voting shares to ⁠help fund its costly AI push, reviving investor scrutiny of the substantial capital required to stay competitive in the race.

The 'Magnificent 7' stocks ⁠were also down, with Amazon.com declining 1.6% and Nvidia down 2.4%. Chip stocks dropped, too. Intel was down 5.1%, while AMD, Qualcomm, ​Marvell Technology , Broadcom and Micron Technology slipped between 2.9% and 5.3%.

At 04:56 a.m. ET, Dow E-minis ⁠were down 367 points, or 0.69%, S&P 500 E-minis were down 85.5 points, or 1.1%, and Nasdaq 100 E-minis were down 578.5 points, ⁠or 1.93%. Brent ​crude climbed more than 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia stoked fears of supply disruptions and a wider Middle East conflict.

A flight to safety pushed ⁠the 10-year yield down to around 5.085%. Bitcoin fell 3.4%, reflecting a broader risk-off mood as investors sought safer-haven assets.

Later ⁠in the day, earnings ⁠from Spotify, Blackstone , American Airlines and Honeywell International are expected to offer a broader read on corporate performance across sectors. IBM fell 5.7% even after raising annual software revenue ‌forecast and reporting ‌third-quarter ahead of Wall Street expectations.