FX.co ★ Tech Shares Set to Drag Wall Street Lower

US stock futures declined on Wednesday, with S&P 500 futures down 0.9%, Nasdaq 100 futures off 1.5%, and Dow Jones futures lower by more than 400 points. Technology shares were poised to deepen their recent selloff amid renewed concerns about stretched valuations.

Investors remained focused on the upcoming CPI report for clearer signals on how the recent energy shock is feeding into inflation and what that might imply for the Federal Reserve’s policy trajectory, including whether additional rate hikes could be warranted this year.

At the same time, ongoing tensions between Iran and the US continued to pressure risk sentiment, with both sides conducting strikes in the Gulf region. Oil prices were volatile as markets weighed the risk that any further escalation could derail already fragile peace talks.

In premarket trading, Nvidia (-1.9%), Broadcom (-2%), and Micron Technology (-3.5%) were weaker, while Oracle slipped 2.9% ahead of its earnings report due after the closing bell.