U.S. stock futures moved lower early Friday as a global technology sell-off intensified, dragging down markets across Asia-Pacific amid growing concerns over the rising costs associated with artificial intelligence infrastructure.
Futures tied to the S&P 500 dropped 0.8%, while Nasdaq 100 futures fell 1.59%. Dow Jones futures were down 107 points, or roughly 0.2%.
The pressure on tech stocks continued Thursday, with the Nasdaq Composite declining 0.46%, marking its first four-session losing streak since February. The S&P 500 edged slightly lower by 0.01%. Meanwhile, strength in healthcare, financial, and industrial sectors helped lift the Dow Jones Industrial Average by 71.72 points, or 0.14%.
The sell-off was especially sharp across Asia. South Korea’s Kospi plunged over 8%, while the Kosdaq dropped more than 5%, triggering a temporary trading halt on the main index for about 20 minutes. Japan’s Nikkei 225 also slid nearly 5%, slipping below the 69,000 mark.
Elsewhere in the region, Australia’s S&P/ASX 200 remained flat. Hong Kong’s Hang Seng Index declined nearly 2%, while China’s CSI 300 fell 2.82%.
During Thursday’s session, major tech companies faced significant losses. Apple sank 6% after announcing price increases for iPads and MacBooks, citing higher memory and storage costs. Microsoft dropped more than 3% after raising prices on Xbox consoles due to escalating component costs. Alphabet and Meta Platforms also ended the session in negative territory.
These declines added to the Nasdaq’s weekly losses, with the index now on track to finish the week down 4.4%. The S&P 500 is also headed for a weekly decline of 1.9%. In contrast, the Dow has remained resilient, posting a week-to-date gain of 0.7%.
Investors are now focused on Friday’s key economic data releases, including May’s preliminary wholesale inventories and June’s final University of Michigan consumer sentiment reading.
