FX.co ★ Nasdaq Struggles as Investors Rotate Out of Tech

U.S. stock futures experienced a slight decline, with technology stocks applying downward pressure on the Nasdaq 100, poised to open with a 0.6% drop. Broadcom shares fell by 6% following an underwhelming sales forecast. Futures for the S&P 500 slipped by 0.2% after previously reaching a record high, while the Dow Jones appeared on track to continue its upward trend. Investors have been shifting away from overly high valuations in the tech sector and stocks associated with artificial intelligence, after a three-day downturn initiated by Oracle's weak revenue performance and ongoing skepticism regarding the benefits of substantial AI investments. Notable declines were observed in premarket trading among Nvidia, Micron, and CoreWeave. Nonetheless, optimism regarding the Federal Reserve’s potential interest rate cuts is bolstering overall market resilience and mitigating the concentration risk linked to the "Magnificent Seven" stocks. Meanwhile, Lululemon saw its share price surge by 9% following the announcement that its CEO would be stepping down at the end of January, amid a challenging year for the athletic apparel company. For the week, the S&P 500 has risen by 0.5%, and the Dow has gained nearly 1.6%, whereas the Nasdaq lags behind with an increase of just under 0.1%.