U.S. Stock Futures Decline as Tech Losses Accelerate Ahead of Inflation Data

U.S. stock index futures declined on Wednesday as technology stocks extended their recent losses, with the Nasdaq 100 E-minis down 1.17%, the S&P 500 E-minis down 0.76%, and Dow E-minis down 0.65%. Major semiconductor companies including Nvidia, Broadcom, and Micron Technology fell between 2% and 3.6% in premarket trading, following Broadcom's disappointing earnings outlook that raised concerns about stretched valuations in the chipmaker sector. Market volatility has intensified due to multiple risk factors: elevated valuations in technology and AI stocks, escalating U.S.-Iran military tensions following strikes on Iranian targets, and growing expectations that the Federal Reserve may need to raise interest rates to combat inflation. Investors are particularly focused on May consumer price data due at 8:30 a.m. ET, which is expected to show a 4.2% annual increase—the largest since April 2023—potentially influenced by rising energy costs from Middle East tensions. Additional pressure comes from concerns about excessive optimism in the tech sector, exemplified by SpaceX's planned $1.75 trillion listing targeting a $75 billion raise.