Dow futures slip 320 points as Nasdaq futures tumble

Dow futures fell about 320 points in premarket trading as Nasdaq futures tumbled and S&P 500 futures slid, following a global equity decline that pulled European and Asian markets lower after Monday’s tech-led losses in New York. S&P 500 futures were down about 1.3%, Nasdaq 100 futures fell roughly 2.4%, and Dow futures lost around 0.6% before the bell.

Rising expectations for higher borrowing costs have reduced the premium investors are willing to pay for AI exposure and other long-duration growth assets, market participants say. Two-year Treasury yields have moved close to recent highs, and futures pricing now implies roughly 50 basis points of additional Federal Reserve tightening by December.

The market is scrutinizing how companies are financing heavy AI and infrastructure investments. SpaceX’s entry into the bond market after its listing prompted closer attention to corporate use of debt for large capital projects and to firms’ ability to service that debt if interest rates rise.

The semiconductor sector faces a key test this week as Micron Technology is due to report results on Wednesday. The Philadelphia Semiconductor Index reached record levels recently, and investors will use Micron’s report to assess demand for memory and AI-related chips against current valuations.

Economic data could shift the market tone. Private business surveys on Tuesday will offer initial readings on June activity in services and manufacturing. The personal consumption expenditures price index, the Fed’s preferred inflation gauge, is due Thursday. A hotter-than-expected PCE would raise the implied probability of further rate increases in futures pricing; a softer reading would reduce that probability.

With earnings, yields and inflation data arriving this week, market attention will center on the PCE report, Micron’s results and incoming business surveys as traders reassess the path for rates and corporate capital spending.