S&P 500: Nvidia, Oracle Hit Tech Sector as Intel Jumps on Apple Investment Buzz

Nvidia, Oracle Extend Losses as S&P 500 Futures Dip for Third Straight Session

S&P 500 futures declined Thursday morning, weighed by continued weakness in tech giants Nvidia and Oracle, as traders looked ahead to key labor market data that could influence the Federal Reserve’s next move. Futures tied to the S&P 500 slipped 0.3%, Nasdaq-100 futures dropped 0.4%, and Dow futures dipped 49 points, or 0.1%.

The premarket drop reflects investor caution as AI-related names struggle and macroeconomic risks remain in focus. Nvidia lost nearly 1% and Oracle slid about 2%, both heading for a third consecutive day of losses following growing skepticism about high valuations and structural risks in the AI sector.

Are Tech Giants Dragging the Index Lower Again?

Nvidia and Oracle’s retreat follows recent AI-related deal scrutiny and valuation concerns. Their declines, along with weakness in Micron, helped drive the major indexes lower on Wednesday for a second consecutive session.

Oracle is also under pressure after pricing $18 billion in new investment-grade bonds, up from earlier guidance of $15 billion—raising liquidity questions among traders.

Intel, however, is moving against the tech trend. The chipmaker jumped nearly 4% in early trading following a Bloomberg report that it is in investment talks with Apple. This comes after news of a $5 billion investment from Nvidia earlier this month. Intel shares are now trading at a 14-month high, signaling renewed confidence in its strategic pivot.

Will Jobless Claims Shift Fed Expectations?

Markets are watching Thursday’s weekly jobless claims data closely. Initial filings eased last week after a brief spike, but concerns over a weakening labor market persist. Fed Chair Jerome Powell said this week that labor market deterioration is becoming a more dominant concern than sticky inflation, influencing the Fed’s recent decision to begin rate cuts.

Salvatore Ruscitti of MRB Partners noted the importance of claims data, stating a “meaningful spike” would be required to shift equity sentiment significantly. Still, traders remain sensitive to any signs of softening employment, particularly with the Fed now emphasizing its full employment mandate.

What Else is Moving Premarket?

Small caps, as tracked by the iShares Russell 2000 ETF (IWM), have broken below an August uptrend after hitting a record high Tuesday. Technical signals from Mott Capital point to growing downside risk in the segment.

Among early movers, Hertz surged 9% after announcing plans to raise $250 million via exchangeable senior notes. IBM climbed 3% after HSBC reported that quantum computing could enhance bond trading. Birkenstock added more than 4% following an upbeat revenue outlook.

Market Outlook: All Eyes on Jobless Claims and PCE

Traders are bracing for further economic catalysts with Friday’s release of the PCE price index and rising political risks as a potential U.S. government shutdown looms. The Office of Management and Budget has warned agencies to prepare for possible layoffs, adding another layer of uncertainty.

The market remains fragile as traders reassess AI valuations, labor trends, and fiscal policy risks. If jobless claims rise meaningfully or Friday’s PCE reading surprises, expect heightened volatility into month-end.

More Information in our Economic Calendar.