15.10.202612:55:04UTC+00Tech Shares Hold Plunge After PPI

Futures tracking US equities were mixed as mounting pressure on AI infrastructure offset resilience in more traditional sectors of the economy. The S&P 500 slipped 0.4%, while the Nasdaq 100 fell nearly 1.4%, marking its sixth decline in seven sessions. Chipmakers and AI hyperscalers extended their losses after Anthropic reported third-quarter revenue growth that slowed from earlier this year and came in below most forecasts, deepening concerns that massive capital spending in the sector may not deliver commensurate returns. Micron, Intel, AMD, and Marvell were down more than 4% in premarket trading, while Seagate and Western Digital dropped 6%.

At the same time, hotter-than-expected producer inflation firmed expectations for a Federal Reserve rate hike this year, adding further pressure on data center operators that have taken on record levels of debt to fund capacity expansion. Even so, the Dow inched higher, supported by a rally in Treasuries as investors rotated out of speculative assets and into lower-risk alternatives. Walmart rose 3% and Eli Lilly gained 2%.