Muted U.S. Index Futures Follow Tech Selloff

U.S. index futures remained steady after significant declines in major tech stocks led the S&P 500 and Nasdaq to their largest drop since 2022. Investors are now anticipating upcoming earnings and economic data, including PCE index data that could influence Federal Reserve rate cut bets. Key stocks like Ford and IBM showcased mixed performance.

U.S. index futures were largely unchanged on Thursday following a major selloff in megacap tech stocks that drove the S&P 500 and Nasdaq to their sharpest declines since 2022. Investors are keenly awaiting a slew of earnings and critical economic data.

As of 5:06 a.m. ET, Dow e-minis had risen by 108 points (0.27%), S&P 500 e-minis by 4.5 points (0.08%), and Nasdaq 100 e-minis by 6.25 points (0.03%). Lackluster earnings from giants like Alphabet and Tesla hampered investor sentiment, causing a ripple effect that impacted the high-momentum 'Magnificent Seven' tech stocks. Major Wall Street indexes fell between 1.2% and 3.6%, hitting multi-week lows.

Premarket trading on Thursday showed mixed results for megacap stocks. Apple, Nvidia, Tesla, and Alphabet dropped between 0.5% and 0.9%, while Amazon and Meta Platforms saw slight gains. Wednesday's selloff renewed concerns about potential overvaluation in these stocks. Meanwhile, Russell 2000 futures rose 0.3% after a steep fall in small-cap indexes.

This week's economic focus includes durable goods, second-quarter GDP, and jobless claims data, with Friday's PCE price index seen as crucial. Market expectations for imminent Federal Reserve rate cuts have slightly lessened. Bets for a 25-basis-point cut in September fell from 90% to 78.5%. Among individual stocks, Ford saw a 13% drop, IBM gained 4.1%, KLA rose 3%, and Chipotle Mexican Grill increased by 4% on strong quarterly results.