FX.co ★ US Futures Drop as Investors Rotate Out of Tech

U.S. stock futures experienced a decline on Thursday, with Nasdaq 100 futures at the forefront of the downturn due to an ongoing shift from technology stocks to sectors focused on value, such as healthcare and financials. During Wednesday’s trading, the Dow Jones Industrial Average rose by 0.68% to hit new record peaks, the S&P 500 inched up by 0.06%, while the Nasdaq Composite witnessed a dip of 0.26%. The healthcare sector led the gains, buoyed by strong earnings reports from Eli Lilly, which rose 3%, and AbbVie, which saw a 3.6% increase, thereby maintaining sector momentum. Financial sectors also made headway, with Goldman Sachs climbing 3.5%, JPMorgan rising 1.5%, and American Express advancing by 0.7%. Conversely, technology and AI-related stocks saw declines, including Tesla, which fell 2.1%, Meta, which decreased by 2.9%, and Palantir, which dropped 3.6%. This shift in sector focus provided some relief to investors desiring wider market involvement but also underscored growing caution toward highly valued assets. Meanwhile, there was growing optimism that the ongoing U.S. government shutdown might reach a resolution within the week.