US equity futures declined ahead of the session open on Friday, with technology shares under pressure following a downturn in the sector throughout the week, as investors raised concerns over soaring artificial intelligence infrastructure costs.
At 4:16 p.m. (Bangkok Time), Nasdaq 100 futures declined 1.16% and S&P 500 futures slid by 0.53%. Meanwhile, Dow futures edged modestly lower by 0.11% due to its fewer selection of tech stocks.
On Thursday, technology-driven names extended their losing run, leading the Nasdaq Composite to fall 0.46%, a fourth consecutive session and its first streak of that length since February. The S&P 500 registered a slight loss, slipping 0.01%. Meanwhile, the Dow Jones Industrial Average booked an increase of 0.14%, supported by investor shifts out of technology and into more defensive sectors.
The selloff in technology has been fueled by concerns over rising costs for memory and storage components impacting device manufacturers. Apple’s decision to increase prices for its MacBook and iPad lineups highlighted these pressures, while robust earnings from memory chip producer Micron indicated that component cost inflation remains a challenge for electronics makers.
Appetite for technology shares was also dampened by a report from the New York Times indicating that OpenAI may delay its anticipated public offering until 2027. At the same time, enthusiasm for AI stocks has cooled as expectations build for another potential Federal Reserve rate hike later this year. Persistently strong inflation data, including a notable May reading of the Personal Consumption Expenditures index, has reinforced these concerns.
Investors are awaiting key U.S. economic data on Friday morning, including preliminary wholesale inventory figures for May and the final reading of the University of Michigan’s consumer sentiment index for June.
