The S&P 500 fell 1.1% on Wednesday after hotter-than-expected inflation data, and futures pointed lower again on Thursday. Chipmakers led a sell-off across Asia and Europe as investors weighed possible Federal Reserve rate hikes and AI financing worries.
S&P 500 futures shed 0.31% early Thursday, after a session driven by hotter-than-expected inflation data. Nasdaq-100 futures dropped 0.83%, while Dow Jones Industrial Average futures added 0.12%.
S&P 500 posts biggest slide since July 29
The S&P 500 dropped 1.1% in regular trading, its biggest one-day slide since July 29. The Nasdaq Composite fell 1.9%, its worst day since July 23. The Dow lost just 0.1%.
The trigger was a September consumer price reading that rose faster than expected year over year. The Guardian reports that US inflation jumped to 3.7%, making it more likely that the Fed will raise rates soon, possibly at the end of this month.
Asian chipmakers tumble
The sell-off spread overnight. South Korea's Kospi fell over 7.84%, dragged by SK Hynix and Samsung Electronics. Japan's Nikkei 225 was down 4.4%, while the Hang Seng declined 1%.
CNBC reported that SK Hynix plunged over 10%. Samsung Electronics fell 7.1%, and SoftBank Group tumbled 7.9% in Japan. Concerns over further Fed rate hikes and the financing of AI investments weighed on sentiment.
European chipmakers followed. ASML was down 1.52% in premarket trading, and Infineon Technologies shed 2.32%.
Data and earnings ahead
Producer prices for September are due at 8:30 a.m. ET Thursday, along with new retail sales figures and weekly jobless claims. U.S. Bancorp, PNC and Charles Schwab are also set to report earnings.
Jamie Cox of Harris Financial Group said: "Inflation is cooking with gas."
Sources: CNBC, The Guardian
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