Hotter U.S. inflation sends Nasdaq futures down more than 1% and triggers biggest one-day drop since July

Hotter-than-expected U.S. inflation readings roiled markets, pushing Nasdaq futures down more than 1% and driving the Nasdaq and S&P 500 to their largest single-day declines since July, The Globe and Mail reported.

Investors reassessed interest-rate prospects after the inflation release, and a widely used Fed probability tool cited in the article showed the market pricing a 27% chance of a Federal Reserve rate hike later this month, up from 20% a week earlier. The Globe and Mail said the selloff cut across technology and artificial-intelligence linked names.

The article highlighted moves in AI-related companies and data-centre operators as particularly severe, noting that CoreWeave fell another 6.3% in premarket trading after dropping about 15% on the prior trading day.

That weakness came even as Anthropic disclosed a 45% quarter-over-quarter rise in third-quarter revenue, a result the paper said failed to restore investor confidence. Chipmaker TSMC also weighed on sentiment, according to The Globe and Mail, by striking a cautious tone for its 2027 outlook despite reporting its sixth consecutive record quarterly profit.

The combination of hotter inflation, growing odds of renewed Fed tightening implied by CME Group’s FedWatch readings, and worries about funding for AI infrastructure were presented in the article as intersecting pressures on tech stocks.

The Globe and Mail described traders' concern that higher interest rates could reduce the pace of AI infrastructure spending, quoting a Jefferies strategist, Mohit Kumar, who said a slowdown in AI infrastructure build-out would imply a sharp slowdown in U.S. growth expectations and noting Jefferies planned to reduce exposure ahead of the midterm election.

The paper singled out CoreWeave as a heavily indebted data-centre operator at the centre of market concern. The article framed the market moves as driven by a mix of macro data and company-specific signals: the inflation print shifted rate expectations, TSMC’s cautious guidance fed growth worries, and mixed revenue news from AI companies failed to reassure investors.

Reuters and other outlets ran headlines noting similar market moves, which The Globe and Mail cited as part of a broader selloff in AI-linked names. Today’s price action illustrates how macro surprises and sectoral funding fears can combine to unsettle tech-heavy indices.

The Globe and Mail’s account emphasizes that even growth in AI revenue does not automatically protect firms from market reactions to changing rate expectations and debt concerns in the data-centre space.