Lam Research and Tesla led losses as investors reassessed AI spending, while fears of renewed military strikes on Iran pushed crude prices higher.

  • Crude oil prices surged as Trump said Wednesday that Washington was not negotiating with Tehran.
  • December Brent crude futures jumped to $112.20 a barrel, while WTI futures approached $100 amid escalating Middle East tensions and supply concerns.
  • Investors eye the economic calendar with weekly initial jobless claims set to release Thursday morning.

U.S. stock futures fell sharply on Thursday as concerns over returns on heavy artificial intelligence (AI) investments resurfaced following major technology earnings, while escalating Middle East tensions sent oil prices higher.

Nasdaq-100 futures declined 1.9%, threatening to erase much of the index's 2.2% gain this week. S&P 500 futures slipped 1.1%, while Dow Jones Industrial Average futures fell nearly 0.7%.

Santiago Mateo, head of equity at CaixaBank Asset Management, told Bloomberg, "The market is still willing to reward heavy AI investment, but is becoming much more demanding about returns".

Investors want evidence that investment is translating into stronger growth, better monetization and ultimately earnings, Mateo added.

What's Dragging Nasdaq Futures?

Chip-equipment maker Lam Research (LRCX) sank more than 7% in premarket trading after its December-quarter outlook roughly matched Wall Street expectations, despite record fiscal first-quarter revenue of $8.22 billion.

Tesla (TSLA) fell nearly 5% after lowering its 2026 capital expenditure forecast to approximately $20 billion from more than $25 billion previously, raising questions about the pace of investments in AI and robotics. Selling spread across semiconductor stocks, with Intel (INTC), Marvell Technology (MRVL), and Advanced Micro Devices (AMD) all falling over 4%.

Meanwhile, Meta Platforms (META) was in the red as the company raised the lower end of its 2026 capital expenditure forecast to $135 billion from $130 billion, maintaining the upper end at $145 billion.

Major index-tracking ETFs also slipped, with Nasdaq-100-linked Invesco QQQ Trust (QQQ) down over 1%, SPDR S&P 500 ETF Trust (SPY) falling 0.9% and SPDR Dow Jones Industrial Average ETF Trust (DIA) losing 0.6%. Stocktwits sentiment remained ‘extremely bearish’ across all three.

Trump’s Iran Remarks Send Oil Prices Higher

Crude oil prices surged as Trump said Wednesday that Washington was not negotiating with Tehran and suggested something would happen "fairly soon."

The New York Times reported that U.S. and Israeli militaries had developed plans for possible renewed strikes on Iran after the midterm elections, citing officials familiar with the preparations. No decision to carry out those strikes was confirmed.

Brent crude futures maturing in December rose over 31% to top $112.20 per barrel, while U.S. West Texas Intermediate (WTI) futures for the same month climbed nearly 3% to nearly $100, amid fears of escalating Middle East tensions and potential supply disruptions.

Drone attacks on Saudi Arabian targets, including an oil field, and Washington's order for some embassy personnel to leave the kingdom added to fears of further disruption to regional energy supplies.

Investors eye the economic calendar with weekly initial jobless claims set to release Thursday morning.

See Also: IBM Stock Slides Over 5% Despite Earnings Beat, Analyst Target Hikes — Software Growth Faces 2027 Test

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