US equity futures, including the Dow Jones, experienced a decline on Friday, extending losses from the previous session. This drop is attributed to market reassessment of speculative positions in major AI infrastructure companies and concerns about sustained spending in that sector. Defensive stocks also declined, signaling a shift towards long-duration Treasuries despite ongoing inflation concerns.
- Dow Jones contracts were around 1% lower.
- The decline reflects markets pivoting toward long-duration Treasuries despite concerns of sticky inflation.
The decline in Dow Jones futures suggests investor apprehension regarding the sustainability of the AI boom and a shift towards safer assets like long-duration Treasuries amidst persistent inflation worries. Companies related to AI infrastructure are facing selling pressure, impacting broader market sentiment and creating uncertainty for future gains.