US equity index futures retreated on Wednesday, paring back gains from the previous session amid a weakening macroeconomic backdrop and a pullback in the recent AI-driven rally. Futures on the S&P 500 and the Dow declined 0.3%, while renewed selling in chipmakers dragged Nasdaq futures down 1.5%. Micron, Intel, and SanDisk slid nearly 4% each in premarket trading, and Nvidia lost 1.5%. The sector remained volatile, underscoring investors’ uncertainty over whether AI hyperscalers will continue to ramp up hardware orders.
Further clarity on that theme is expected after the close, when Alphabet reports earnings—its first update since boosting capital expenditures last quarter. Tesla, also scheduled to report, fell 1.5% and is again testing its lowest levels since April. Geopolitical tensions between the US and Iran intensified after Secretary of State Rubio played down prospects for diplomacy, heightening concerns over energy-driven inflation and pushing bond yields higher. Financial stocks weakened as well, with Visa slipping 1%.
