US stock market futures have fallen on Thursday, October 15, as rising inflation and concerns over artificial intelligence spending put pressure on technology stocks for a second consecutive session. Nasdaq-100 futures dropped about 1.3%, while S&P 500 futures declined 0.3%. Meanwhile, Dow Jones futures gained 0.4%, supported by stronger demand for shares outside the technology sector.

US Stock Market Futures Fall as Tech Selloff Continues

The latest losses followed Wednesday's sharp decline on Wall Street. The S&P 500 dropped 1.11% to 7,718.94 while the Nasdaq Composite fell 1.88% to 26,692.87. The Dow Jones Industrial Average lost 48.62 points, closing at 51,621.48.

Technology companies led the losses as investors questioned whether growing AI infrastructure spending could deliver enough revenue to cover its costs. Higher borrowing rates have added pressure on companies relying on debt to finance data centers and computing equipment.

CoreWeave shares fell around 5% in Thursday's premarket trading after losing more than 15% on Wednesday. Oracle declined about 2% after dropping nearly 9% in the previous session. Both companies have faced growing scrutiny over borrowing tied to AI infrastructure.

Chipmakers also traded lower. Micron Technology declined nearly 4%, Advanced Micro Devices fell more than 2%, and Nvidia slipped around 2%. However, Walmart gained approximately 3%, while Merck advanced more than 1%, showing that selling pressure remained concentrated in technology stocks.

US Wholesale Inflation Jumps 6.3%, Raising Fed Concerns

Fresh inflation figures added to market uncertainty Thursday. The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI), which measures prices received by domestic producers, increased 1.3% in September.

The reading exceeded economists' expectations of a 0.6% monthly increase. On an annual basis, wholesale inflation reached 6.3%, compared with the 5.5% forecast marking its fastest yearly increase since December 2022.

Energy prices accounted for much of the increase. Producer prices for energy rose 10.8% during September, while gasoline prices jumped 20.3%. However, prices excluding food, energy and trade services also increased 0.5%, indicating broader inflation pressure.

The report followed Wednesday's consumer inflation figures, which showed annual price growth accelerating to 3.7% from 3.4% in August. Core consumer inflation, which excludes food and energy, reached 2.6%.

Together, the reports raised concerns that the Federal Reserve could increase interest rates again to contain inflation.

Higher interest rates could also make borrowing more costly for businesses, particularly technology companies spending heavily on AI infrastructure. Investors may also reassess company valuations as financing costs rise.

AI Stocks Fall Despite TSMC's Record Quarterly Profit

Technology stocks continued to fall despite strong quarterly results from Taiwan Semiconductor Manufacturing Company (TSMC), which manufactures chips for Nvidia and Apple. TSMC earned USD 23.6 billion in the third quarter, a 68.7% increase from a year earlier. It was the company's sixth consecutive quarter of record profit.

Demand for advanced chips used in artificial intelligence remains strong, according to TSMC. Still, CEO C.C. Wei expressed caution about the year ahead. He pointed to rising component costs and economic uncertainty, which could make some customers more careful about spending in 2027.

Meanwhile, Anthropic reportedly generated about USD 16.8 billion in third-quarter revenue, a 45% increase from the previous quarter. Although the AI company's revenue increased about 45% from the previous quarter investors remained concerned about the spending required to support continued growth.

ALSO READ: Anthropic Revenue Hits USD 16.8B: IPO Targets USD 2 Trillion Valuation

The selling extended into Asian markets. South Korea's Kospi dropped more than 7%, while Japan's Nikkei fell nearly 5%, reflecting losses across major semiconductor and technology companies.

What Investors Are Watching Next

Investors are now assessing whether inflation will push the Federal Reserve toward another interest rate increase. Before Thursday's wholesale inflation release, futures traders assigned a 27% probability to an October rate hike and a 67% chance to a quarter-point increase in December.

Corporate earnings will also shape expectations. Analysts forecast approximately 30.6% earnings growth for S&P 500 companies in the third quarter, according to LSEG estimates. Technology and energy companies are expected to contribute heavily to that increase.

For now, investors are watching economic data, Treasury yields and AI company spending plans as markets assess the possibility of tighter monetary policy.

ALSO READ: FTSE 100 Index Opens 51 Points Higher at 10,776 Following Hotter US Inflation Reading, Brent at USD 104.1