Nasdaq futures fall 2% on tech worries, Fed hike bets

U.S. tech futures fell sharply as investors grew more cautious about higher-for-longer interest rates and the financing burden of AI-related spending. Nasdaq 100 E-minis dropped more than 2%, while S&P 500 and Dow futures also declined, reflecting broader risk-off sentiment. The article highlights concern that elevated borrowing costs could pressure highly valued AI and megacap tech names, especially after recent weakness in SpaceX, Alphabet, Meta, Microsoft, and Amazon. Markets are now pricing in a more hawkish Federal Reserve path, with traders expecting 50 basis points of hikes by December. The move comes alongside a broader global selloff and ahead of key U.S. data, including private June activity surveys and Friday’s PCE inflation report, which could reinforce rate expectations. Overall, the tone is negative for tech-heavy equities and the broader Nasdaq outlook in the near term.