Shares of chip manufacturers led the market lower on Thursday as technology stocks extended their recent selloff. Nasdaq futures dropped sharply in premarket trading, signaling continued weakness in the sector.
The broader technology index faced renewed pressure from rising interest rate expectations. Investors grew wary of high valuations for growth stocks as bond yields climbed.
Among the biggest decliners, semiconductor companies saw the steepest losses. Concerns over slowing demand and oversupply weighed heavily on chip stocks.
Oil prices continued their steady slide, edging closer to levels seen before geopolitical tensions disrupted global supply. The move lower in crude provided some relief for consumers but raised questions about global economic demand.
The Dow Jones Industrial Average futures also pointed to a weaker open. The blue-chip index faced headwinds from industrial and energy stocks tied to the economic outlook.
Investors now look ahead to upcoming economic data for clues on the Federal Reserve’s next policy moves. Stronger-than-expected reports could fuel further selling in rate-sensitive sectors.
Thursday’s trading session is expected to test recent support levels for major indexes. Market participants remain cautious amid ongoing uncertainty about inflation and corporate earnings.
