Investing.com– U.S. stock futures were little changed Friday in Asia as a rally in government bonds eased pressure on stocks, but investors remained cautious about technology valuations and the debt financing the artificial intelligence infrastructure boom.
Futures edged down 0.1% to 7,802.00 points, while gaining 0.1% to 30,173.25 points at 1:55 a.m. ET (05:55 GMT). trades up 0.1% at 52,496.0 points.
During the regular session, it climbed 1.1% as investors shifted to defensive sectors, including healthcare and consumer goods. The S&P 500 rose 0.3%, while the S&P 500 gained just 0.1%.
Technology stocks remained vulnerable as investors questioned whether strong demand for artificial intelligence would justify the huge spending on data centers, chips and cloud infrastructure, especially as borrowing costs rise.
Nvidia () fell 1.8% on Thursday, while server makers Dell Technologies () and Hewlett-Packard Enterprise () fell 6.9% and 7.1%, respectively. The stock fell 0.9%, extending its losing streak to seven sessions.
Data Center Operator CoreWeave Inc () has come under scrutiny due to its large borrowings and capital expenditures, while Oracle () and other AI infrastructure companies have faced pressure as investors reassess the sustainability of spending on computing capacity.
Inflation remained a major concern for the markets. Data released Thursday showed U.S. producer prices rose more than expected in September, the rise being the largest in four and a half years.
The data follows Wednesday’s release of a stronger-than-expected consumer price report, which prompted investors to reevaluate the Federal Reserve’s policy outlook.
However, Treasury yields fell sharply on Thursday, with the benchmark falling to around 5.09%, easing pressure on stock valuations.
Markets have priced in a 67% chance of a Fed rate hike by December, according to CME Group’s FedWatch tool, Reuters reported.
Federal Reserve Chairman Kevin Warsh said Friday that persistent inflation remains a common challenge for policymakers around the world and that the global economy has shown greater resilience than expected amid geopolitical tensions.
Warsh said the Fed removed some monetary policy easing at its September meeting, but declined to signal its next move.
Speaking at the International Monetary Fund’s annual meetings, he also described AI as a potentially transformative development that could boost productivity and economic growth in the medium term.
The ongoing third-quarter earnings season remained another area of concern.
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