Pre-Market Update: Dow Hits Another Record While Nasdaq Sinks - What’s Driving the Split?

TLDR

• Dow futures rose 0.3% while Nasdaq 100 futures dropped 0.3% in Thursday pre-market trading
• Investors are rotating out of tech stocks due to concerns about AI overspending and high valuations
• AMD, Sandisk, and Western Digital saw sharp declines after disappointing earnings reactions
• Nvidia rose over 3% after SpaceX announced it would exclusively use Nvidia chips
• Iran and Oman reached a temporary agreement on a shipping route through the Strait of Hormuz, steadying oil prices near $80 per barrel

US stock futures showed a split picture on Thursday morning. Dow Jones futures gained 168 points, or 0.3%, while Nasdaq 100 futures fell 0.3%. S&P 500 futures edged up 0.2%.

The Dow closed at a record high for the third straight session on Wednesday. The Nasdaq fell on the same day, dragged down by a selloff in Alphabet shares after the company reshuffled its AI division.

The two indexes are again pointing in opposite directions Thursday morning. This pattern reflects a broader rotation by investors away from large tech names.

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