• Nasdaq 100 futures slid 3.1% as selling pressure intensified, driven by rising Treasury yields and cautious tech earnings guidance.
  • The technology-heavy index is on track for its worst session in months, with mega-cap stocks like Apple (AAPL) and Nvidia (NVDA) leading declines.
  • Investors are now focused on upcoming inflation data and Federal Reserve commentary for signs of further rate hikes.

Risk-Off Mood Deepens

Nasdaq 100 futures extended their decline on Thursday, last down 3.1% as a broad selloff in technology stocks gathered pace. The drop comes amid a spike in U.S. Treasury yields, with the 10-year note yielding above 4.5% for the first time since November, pressuring high-valuation growth names.

“The market is repricing expectations for higher-for-longer rates,” said a senior equity trader at a New York-based hedge fund. “Tech is bearing the brunt because these companies’ valuations are most sensitive to discount rate changes.”

Earnings Season Adds Pressure

Compounding the macro headwinds, lackluster earnings reports from several large-cap tech firms have dampened sentiment. After the close on Wednesday, a major cloud-computing company issued below-consensus revenue guidance, citing slowing enterprise spending. Shares of the company tumbled 6% in premarket trading, dragging down peers.

“The earnings bar was set high after last quarter’s AI optimism,” noted an analyst at a European asset manager. “Now some companies are showing that the transition to higher spending on artificial intelligence isn’t translating into immediate revenue growth.”

Waiting on Data and the Fed

Traders are now looking ahead to Friday’s producer price index report, which could offer further clues on inflation trends. The data comes after a hotter-than-expected consumer price index reading earlier this month, which fueled bets that the Fed will hold rates steady for longer.

“The tech selloff is a one-two punch: yields are rising and earnings are disappointing,” said a portfolio manager at a Boston-based mutual fund company. “Without a catalyst, futures could slide further.”

A spokesperson for the CME Group, which lists Nasdaq 100 futures, declined to comment.

Correction Note

A previous version of this article mistakenly stated that the Dow Jones Industrial Average futures were also down 3%. In fact, Dow futures were down 1.2% as of press time. The error has been corrected.