Tech led a retreat in US stocks before the bell on Friday as investors digested a downbeat week on Wall Street for the sector.
Nasdaq 100 futures (NQ=F) sank 1%, while those on the S&P 500 (ES=F) moved down 0.3% after closing lower on Thursday the fourth straight time this week. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech names, traded broadly flat.
Concerns are growing that the skyrocketing cost of memory and storage components could hit device makers, after Apple (AAPL) raised prices of its MacBooks and iPads. Memory chipmaker Micron’s (MU) stellar earnings showed the squeeze is set to continue.
Meanwhile, a New York Times report that OpenAI (OPAI.PVT) is planning to push back its mega-IPO until 2027 is also dragging on appetite for techs.
The AI trade was already under pressure as bets grow on a Federal Reserve interest-rate hike this year. A hot May reading of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, kept that prospect alive.
Meanwhile, although oil prices have fallen since the US and Iran agreed a 60-day ceasefire, negotiations on protracted issues remain uncertain, and reports of turmoil in the Strait of Hormuz continue to emerge.
