FX.co ★ US Futures Steady After Tech-Led Selloff

U.S. stock futures showed signs of stabilization on Thursday following a significant tech-driven decline in the previous trading session. The drop was spurred by escalating trade tensions and cautious remarks from Federal Reserve Chair Jerome Powell, which unsettled investors. On Wednesday, the Dow Jones Industrial Average decreased by 1.73%, the S&P 500 fell by 2.24%, and the Nasdaq Composite dropped by 3.07%. This decline was prominently led by the semiconductor sector. Nvidia saw a notable 6.9% drop after announcing a $5.5 billion charge related to new U.S. export restrictions on its AI chips intended for the Chinese market. Other companies in the sector experienced similar downturns: AMD fell 7.4%, ASML declined 7.1%, and Micron Technology decreased 2.4% amid warnings of increased costs and indications of weakening demand. Further contributing to the market pressure, Chair Powell, speaking in Chicago, cautioned that rising tariffs could exacerbate inflation and slow down growth, complicating the Federal Reserve's objectives of maintaining price stability and employment. The lack of clarity from Powell regarding future interest rates also contributed to market volatility, with major indices reaching their lowest points of the session.