Nasdaq futures fall on AI spending and Fed rate concerns

Nasdaq futures fell Thursday evening as investors worried about AI infrastructure spending costs and potential Federal Reserve rate hikes, with S&P 500 futures down 0.1% and Nasdaq 100 futures down 0.4%. Tech stocks remained vulnerable despite strong earnings from Taiwan Semiconductor, as Nvidia fell 1.8% and server makers Dell and Hewlett Packard Enterprise dropped over 6%. Higher-than-expected US inflation data, including September producer prices rising the most in four and a half years, fueled rate hike concerns. Markets priced a 67% probability of a Fed rate increase by December, though Treasury yields eased to about 5.09%. Investors also weighed retail sales data and ongoing third-quarter earnings reports amid scrutiny of AI companies' debt-financed expansion.