Key facts
- Nasdaq Composite lost 1.24% to 26,363.01.
- Nvidia shares dropped 1.8%, Micron Technology fell 3.7%, and Advanced Micro Devices declined 2.3%.
- CoreWeave shares fell 6.3% in premarket trading, extending Wednesday's decline.
- Oracle shares dropped 2.1% after a significant fall in the prior session.
- TSMC offered a cautious outlook for 2027 due to macroeconomic uncertainties.
Nasdaq futures declined over 1% on Thursday as concerns over higher interest rates potentially impacting artificial-intelligence funding deepened a rout in AI-related stocks. The Nasdaq and S&P 500 experienced their largest one-day drop since July on Wednesday following hotter-than-expected inflation data, which fueled expectations of further US Federal Reserve rate hikes.
TSMC, the world's largest chip manufacturer, reported its sixth consecutive record quarterly profit but offered a cautious outlook for 2027 due to macroeconomic uncertainties. Reports of AI lab Anthropic's revenue surge did little to lift sentiment.
Heavily indebted data-center operator CoreWeave saw its shares fall another 6.3% in premarket trading, following a 15% decline on Wednesday. Cloud computing giant Oracle also dropped 2.1% after a significant fall in the prior session, with both companies' bonds facing pressure and yields reaching record highs. Chipmakers extended losses, with Nvidia, Micron Technology, and Advanced Micro Devices all declining. Mohit Kumar, an economist at Jefferies, noted that a slowdown in AI infrastructure build-out would imply a sharp slowdown in US growth expectations.