FX.co ★ US Equity Futures Swing Lower After CPI

US stock futures turned lower on Wednesday following hotter-than-expected inflation data and renewed volatility in the AI infrastructure space. Futures tied to the S&P 500 and Dow were down 0.3%, while Nasdaq 100 contracts dropped nearly 1%.

Semiconductor stocks extended their declines for the week after ASML said it could not keep pace with demand from chip fabs, even as Chinese rivals rolled out more advanced products that are closing the gap with US and South Korean competitors. The latest headline and core inflation readings reinforced expectations that the Federal Reserve will deliver another interest rate hike this year.

Shares of AMD and Intel fell about 2% in premarket trading, while Dell, SanDisk, and Palo Alto Networks lost more than 3%. By contrast, Morgan Stanley gained around 1% after its equity trading revenue beat expectations, and BlackRock inched higher as stronger inflows into its asset-management business lifted fee income.