Nasdaq futures slide as AI spend and Fed outlook weigh on tech rally
Nasdaq futures fell more than 2% on Tuesday as investors weighed ballooning AI infrastructure costs and a hawkish outlook for U.S. rates, dragging mega-cap tech names like Nvidia and Alphabet. Premarket declines extended to other indices (Dow and S&P futures lower; Russell 2000 down about 1.7%), while the VIX rose and the two-year Treasury yield hovered around 4.19%, with traders pricing in up to 50 basis points of Fed hikes by year-end.