Investing.com — U.S. stock index futures fell Thursday after chipmaker Micron Inc. released disappointing forecasts and ahead of the release of key economic data.
As of 6 a.m. ET (10 a.m. GMT), they were down 50 points (0.2%), down 7 points (0.1%) and down 25 points (0.1%).
Wall Street stock indexes ended modestly higher on Wednesday after Amazon’s (NASDAQ:) valuation surpassed the $2 trillion mark after the company announced a major foray into generative AI.
Micron falls on weak earnings outlook, other chipmakers follow suit
But sentiment worsened following an after-hours announcement on Thursday from Micron Technology (NASDAQ:), a company often seen as an industry bellwether due to its exposure to a wide range of chip types and customers.
Micron’s quarterly profit beat market expectations on strong demand for AI, but the in-line revenue disappointed investors who had hoped for stronger results, especially since Micron’s value has more than doubled over the past year. The company’s shares fell more than 5% in premarket trading.
Other chip makers also fell, with market darling Nvidia (NASDAQ: arm Holdings (NASDAQ:) and Broadcom (NASDAQ:) fell in pre-market trading.
Focus on economic data and presidential debate
That said, investors appear to be taking a somewhat wait-and-see stance ahead of key U.S. inflation data and the presidential debate.
On Thursday, the latest weekly, , and final data for the first quarter will be released.
But it will be Friday’s that will attract the most attention, as it is widely seen as the Fed’s preferred inflation gauge.
Markets were also on edge ahead of the first presidential debate of the year between Democratic and Republican candidates Joe Biden and Donald Trump, scheduled for later on Thursday.
Levi Strauss & Co. plunges as sales miss forecast
In other company news, Walgreens Boots Alliance (NASDAQ: Nike (NYSE:).
Meanwhile, shares of jeans maker Levi Strauss & Co. (NYSE:) fell nearly 15% after the company reported second-quarter earnings that fell short of expectations.
GSK (NYSE:) shares fell more than 1% in pre-market trading after U.S. public health officials narrowed their recommendations for use of all respiratory syncytial virus (RSV) vaccines, suspending the recommendation for use in people under the age of 60.
Oil prices rebound as US inventories rise
Oil prices surged on Thursday, recovering from early losses after an unexpected rise in U.S. inventories.
By 6 a.m. ET, U.S. crude oil futures (WTI) were trading up 0.6% at $81.37 per barrel, while Brent crude futures were up 0.6% at $84.95 per barrel.
The United States reported that domestic crude oil inventories rose by 3.6 million barrels last week, according to data released late on Wednesday, disappointing markets that had expected a fall of 2.6 million barrels.
More worryingly, gasoline inventories rose by 2.7 million barrels, indicating fuel consumption remains weak despite the start of the busier summer travel season.
(Amber Warlick contributed to this article.)
