Nasdaq futures slipped on Tuesday as investors weighed fresh controversy surrounding Nvidia CEO Jensen Huang and details of artificial intelligence startup Anthropic's proposed initial public offering, adding to uncertainty over the outlook for technology stocks.
Futures linked to the Nasdaq 100 fell 0.35% to 27,937, while Dow Jones futures gained around 0.3%. S&P 500 futures were largely unchanged, reflecting a mixed mood across Wall Street ahead of a crucial US inflation report.
Chipmakers came under pressure in premarket trading. Intel shares fell 2.51% to $57.88, while Marvell Technology declined 2.58% to $150.60. Nvidia shares were down 0.88% at $177.09 in premarket trade.
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The latest pressure on Nvidia followed a report by The Information alleging that Huang's relationship with Chinese businesswoman Alice Huang, who was described in the report as an alleged Chinese spy, facilitated shipments of at least $7.5 billion worth of Nvidia chips through Chinese firms.
The allegations have drawn attention to the leadership of Huang, whose role has become particularly significant as Nvidia remains at the centre of the global artificial intelligence boom. Investors are closely watching developments surrounding the company given its influence on the broader technology and semiconductor trade.
Meanwhile, Anthropic's proposed IPO has become another talking point for investors assessing valuations across the AI industry.
According to a draft prospectus seen by Reuters, the AI company is expected to seek as much as $64.4 billion through its initial public offering. The potential listing could rank among the largest IPOs on record and intensify competition among AI companies for investor capital.
The development comes as enthusiasm around AI-linked stocks faces closer scrutiny. Aswath Damodaran, a finance professor at New York University's Stern School of Business, said the easy phase of investing in companies associated with the AI ecosystem on the back of broad optimism was largely over.
Investors were also positioning ahead of the October Consumer Price Index (CPI) report, scheduled for release at 8:30 a.m. ET.
A Reuters poll of economists expects consumer prices to have increased 0.3% in October, following a 0.6% rise in September. Core inflation, which excludes food and energy, is estimated to have risen 0.2% month-on-month.
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The figures could influence expectations around the Federal Reserve's interest-rate trajectory. Fed Governor Christopher Waller said in a speech that a December rate hike was likely, adding that a larger half-percentage-point increase could also be considered if inflationary pressures persist.
Oil prices offered some support to the broader market, with Brent crude slipping below $90 a barrel for the first time since August. Dow futures remained in positive territory as investors assessed the impact of lower energy prices.
Markets were also watching CoreWeave's quarterly earnings, due after the closing bell, for clues about the strength of AI infrastructure spending and concerns surrounding the company's debt burden.
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