Wall Street Futures Slide as AI Financing Risks Persist Despite Strong Anthropic and TSMC Results: Dow Jones, S&P, Nasdaq
US equity futures declined on Thursday as investors continued to reduce exposure to technology stocks amid concerns about artificial intelligence spending, corporate debt and the prospect of further monetary tightening by the Federal Reserve.
Reports of substantial revenue growth at Anthropic (NASDAQ:ANTP) and record earnings from Taiwan Semiconductor Manufacturing Company (NYSE:TSM) provided evidence of continued demand for AI technology, but failed to offset broader concerns about valuations and financing costs.
At 02:54 ET (06:54 GMT), Dow Jones futures gained 27 points, or 0.1%, while S&P 500 futures dropped 38 points, equivalent to 0.5%. Nasdaq 100 futures fell 407 points, or 1.4%.
The moves followed Wednesday's sharp decline on Wall Street, when stronger-than-expected US inflation figures triggered a rise in Treasury yields and increased expectations of a possible interest rate increase later this month.
The S&P 500 and Nasdaq Composite both recorded their largest daily declines since July.
Higher Borrowing Costs Put AI Investment Plans Under Scrutiny
Investors have become increasingly concerned about the financial implications of the substantial capital expenditure required to develop artificial intelligence infrastructure.
Technology companies are investing heavily in data centres, advanced computing equipment and related facilities, with some relying on significant borrowing to fund expansion.
The latest US inflation figures intensified those concerns by increasing expectations that interest rates could remain elevated or rise further.
Higher financing costs may place additional pressure on companies whose investment programmes depend on access to debt markets.
US Treasury yields initially rose sharply following the inflation report, although the sell-off in government bonds moderated later in Wednesday's session.
Analysts suggested that the subsequent improvement in Treasury prices partly reflected a shift away from riskier AI-related investments towards government securities.
CoreWeave (NASDAQ:CRWV) was among the companies most affected by the change in sentiment.
Shares in the AI cloud infrastructure provider fell more than 15%, while some of its outstanding bonds declined to new lows in secondary trading.
The movements reflected growing investor attention to the balance between expected AI revenue growth and the borrowing required to support infrastructure development.
Anthropic Revenue Growth Slows Despite Reported 45% Increase
Anthropic (NASDAQ:ANTP) reportedly disclosed third-quarter revenue of approximately $16.8 billion during a meeting with institutional investors on Wednesday.
The figure represented a 45% increase from the previous quarter's $11.6 billion, according to The Wall Street Journal.
The publication reported that the developer of the Claude chatbot had generated less than $5 billion in revenue during the first quarter.
Although the latest figures indicated continued strong demand for Anthropic's products, they also suggested that its quarterly growth rate was moderating.
Analysts at Vital Knowledge highlighted the contrast between the company's reported performance and the unusually high expectations surrounding AI businesses.
They observed that the growth would be impressive "in any normal world", but that investors accustomed to exceptionally rapid expansion might respond negatively to signs of slowing momentum.
"In the land of AI, where investors are used to parabolic figures, a slowdown in growth undercuts sentiment," the analysts wrote.
The reported results come amid speculation about a potential initial public offering by Anthropic.
According to The Wall Street Journal, the company is considering raising as much as $100 billion at a valuation of approximately $2 trillion.
The timing of any listing remains uncertain, although additional operational disclosures could emerge in IPO-related documentation over the coming weeks.
TSMC Delivers Record Quarterly Earnings
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) reported a 69% increase in quarterly net profit to NT$763.06 billion for the three months ended 30 September.
The result exceeded the NT$746.3 billion consensus estimate based on LSEG figures cited by Reuters.
Revenue increased 50% year-on-year to NT$1.49 trillion, reflecting continued demand for advanced semiconductor manufacturing.
The company reported a gross margin of 66.4%, an operating margin of 58.7% and a net profit margin of 51.1%.
TSMC also indicated that it had considered additional manufacturing facilities in the United States, including a potential expansion into Texas.
The plans reflect efforts to increase capacity as customers continue investing in the computing technology required for artificial intelligence applications.
TSMC's financial performance provided a contrast to the broader sell-off in AI-related shares.
While semiconductor demand remained strong, investors continued to question whether all companies participating in the AI investment cycle would generate sufficient returns to justify their valuations and capital commitments.
Producer Price Inflation Could Influence Fed Expectations
Attention was also turning to the forthcoming US producer price index report for September.
Economists expected producer prices for final demand to increase 0.6% from August, compared with the previous month's 0.4% rise.
Annual producer price inflation was forecast to ease slightly to 5.3% from 5.4%.
The figures follow Wednesday's consumer inflation report, which showed a larger-than-expected increase in prices amid higher energy costs linked to the conflict involving Iran.
The inflation readings are expected to influence market expectations ahead of the Federal Reserve's policy meeting on 27–28 October.
Investors will also assess US retail sales and initial jobless claims data for further evidence of economic resilience and labour market conditions.
Crude Oil Retreats as Traders Assess Shipping Disruptions
Oil futures moved lower on Thursday despite continuing uncertainty surrounding energy shipments through the Middle East.
At 03:35 ET, Brent crude futures declined 1.9% to $104.02 per barrel, while West Texas Intermediate fell 1.1% to $94.04.
According to Reuters, maritime officials reported that two commercial vessels had sunk near the Strait of Hormuz during the preceding 24 hours following separate projectile strikes.
The incidents added to concerns about the security of energy shipments through one of the world's most important maritime routes.
Fighting involving Saudi Arabia and Houthi forces in Yemen has also raised questions about the safety of shipping through the Bab el-Mandeb Strait, which connects the Red Sea with the Gulf of Aden.
Meanwhile, reports suggested that US President Donald Trump was considering easing sanctions affecting certain vessels associated with the so-called shadow fleet.
These ships are used to transport oil and petroleum products from countries subject to sanctions, including Russia, Iran and Venezuela.
A relaxation of restrictions could potentially reduce shipping costs and improve the movement of crude oil supplies.
Nevertheless, continued geopolitical disruption has kept energy prices elevated, adding another source of uncertainty for inflation expectations and financial markets.