U.S. stock futures fell Thursday after chipmaker Micron’s (MU) outlook hit hopes for a tech stock rally as investors considered the latest economic data ahead of a measure of inflation key to Federal Reserve policy.
S&P 500 futures (ES=F) were little changed, paring a small loss from the previous day after climbing on Wednesday to close just below an all-time high. Dow Jones Industrial Average (YM=F) futures were down 0.2%, and tech-heavy Nasdaq 100 (NQ=F) futures were also flat.
Micron’s current-quarter sales outlook met expectations, but that didn’t satisfy investors who were hoping for a more dramatic performance boost from the AI ​​company, sending the stock price tumbling.
Bullish views on AI have helped propel the S&P 500 Index (^GSPC) up 15% this year, but there are growing concerns that the gains could be in jeopardy if the handful of tech companies that have driven much of that gain stop beating already-high expectations.
Shares of memory maker Micron fell about 5% in premarket trading, while Nvidia (NVDA) fell about 1%, rekindling concerns that the selling pressure that rocked markets last week could return.
Investors were considering new economic data ahead of Friday’s release of PCE inflation numbers, which will influence thinking about when the Fed will cut interest rates.
New weekly jobless claims rose to 233,000, down 6,000 from the previous week, Labor Department data showed. The figure was below the consensus forecast of 235,000, easing concerns that claims might rise again, signaling a weakening labor market.
The Department of Economic Development’s third estimate, released Thursday morning, showed real gross domestic product (GDP) growing at a 1.4% annualized rate in the first quarter of 2024, slightly up from a previous estimate of 1.3%.
Inflation is also likely to be a major issue in the first debate between President Joe Biden and former President Donald Trump on Thursday night.
On the corporate front, shares of jeans retailer Levi Strauss (LEVI) fell more than 15% after the company reported weaker-than-expected second-quarter earnings, and investors will be looking to Nike (NKE) quarterly results after the close for further clues about consumer resilience.
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