Nasdaq futures slip as chip stocks resume 7% selloff, oil steady

Nasdaq 100 futures declined 0.5% in pre-market trading Thursday as semiconductor stocks came under renewed selling pressure, while oil prices held steady after falling to the lowest level since before the Iran conflict began.

"The chip selloff is rotating back into focus after a one-day pause, with traders positioning ahead of PCE data that could shift the inflation narrative," said Sarah Lin, equity market analyst at Edgen.

The Invesco PHLX Semiconductor Sector Index sank 7% on Tuesday in its worst single-day drop this year, then stabilized Wednesday with a modest recovery as the broader market rallied on falling oil prices. Micron Technology Inc., which fell 14% over Tuesday and Wednesday combined from an all-time high, reported earnings after Wednesday's close. The stock added to losses in after-hours trading, extending pressure on the sector.

WTI crude traded near $70 a barrel Thursday after sliding 4% on Wednesday to touch $69.84 intraday, the first dip below that level since early March. The decline followed news that more than 11,000 seafarers stranded in the Persian Gulf received safety guarantees to exit through the Strait of Hormuz, with President Donald Trump saying Iran committed to no tolls or extra charges on ships. Brent fell 4% to around $73.

The 10-year Treasury yield held near 4.41% after falling 8 basis points Wednesday, while the 2-year yield stayed around 4.15%. The moves across the curve pointed to a shift in inflation expectations as crude returned to pre-conflict levels. Thursday's personal consumption expenditures report, the Federal Reserve's preferred inflation gauge, arrives with oil at its cheapest since before U.S. and Israeli strikes on Iran started in late February.

S&P 500 futures edged higher alongside the Dow, suggesting a split session where tech weakness may be offset by gains in other sectors. The S&P 500 closed Wednesday at 7,572, up 0.6%, after testing its 50-day moving average at 7,350 and holding. The Dow Jones Industrial Average added 457 points, or 0.9%.

This article is for informational purposes only and does not constitute investment advice.