U.S. stock index futures fell in premarket trading Friday, with technology and semiconductor shares leading the decline as investors awaited key inflation data. The movement followed a volatile week for the chip sector, which saw a significant rally earlier in the session driven by Micron Technology’s earnings report.
As of 7:15 a.m. ET, Dow Jones Industrial Average e-minis were down 45 points, or 0.11%. S&P 500 e-minis declined 14 points, or 0.25%, and Nasdaq 100 e-minis dropped 90 points, or 0.45%, according to LSEG data.
The semiconductor sector was a central focus of the premarket activity. Micron Technology (MU), which had reported quarterly revenue and profit that surpassed analyst estimates on Wednesday, saw its shares fall 2.4%. The company’s stock had gained significantly in the previous session following its positive forecast related to demand for its memory chips used in artificial intelligence hardware.
Other major chipmakers also traded lower. Nvidia (NVDA), a stock that has been a primary driver of the market’s gains this year, decreased by 1.5% in premarket hours. Broadcom (AVGO) and Arm Holdings (ARM) also saw declines of 1.1% and 1.8%, respectively.
The broader market downturn came as investors prepared for the release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, scheduled for 8:30 a.m. ET. The report is closely monitored by market participants for indications of the central bank’s future monetary policy path.
Economists surveyed by Reuters anticipate that the May PCE report will show a moderation in price pressures, which could influence the Federal Reserve’s timeline for potential interest rate adjustments.
Other megacap technology stocks also contributed to the negative sentiment. Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN) were all down between 0.3% and 0.6% in premarket trading.
Despite the morning’s decline, major indexes remained on track for gains for the month and the second quarter. The technology-centric Nasdaq Composite has been a strong performer, driven by enthusiasm for artificial intelligence applications. The S&P 500 has also posted consistent gains, reaching multiple record highs during the quarter.
The market’s direction for the day is expected to be influenced by the inflation data and subsequent reactions from investors regarding its implications for the U.S. economy and Federal Reserve policy.
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