Stock Futures Dip Amid AI Valuation Concerns and Economic Data Anticipation

U.S. stock index futures fell as investors turned away from AI-linked stocks, citing valuation concerns. The Nasdaq had previously recorded a 2% drop. High valuations raise vulnerability to market shifts. Key financial data and U.S. government actions remain central to market analysis.

U.S. stock index futures declined on Wednesday morning, marking the second consecutive day of retreat from AI-linked stocks due to growing concerns over inflated valuations. Investors are also keenly awaiting economic data to gauge the health of the U.S. labor market.

By early morning, Dow E-minis had dropped 28 points, S&P 500 E-minis were down 18.75 points, and Nasdaq 100 E-minis fell by 115.75 points. Despite being at all-time highs in late October, Wall Street's major indexes have shown vulnerability as warnings of a pullback from bank CEOs and hedge funds loom over the AI-focused market.

The S&P 500's recent trading at 23.3 times forward earnings underscores its heightened valuation. The U.S. government's record-breaking shutdown and key employment figures further complicate the economic landscape, while corporate earnings remain a crucial factor for market performance.

(With inputs from agencies.)