US Stock Futures Fall as AI Valuation Concerns Offset Anthropic Revenue Growth and TSMC Record Profit

US stock futures declined on Thursday as investors weighed concerns over artificial intelligence valuations and the potential for higher interest rates against strong corporate earnings from semiconductor and AI firms. At 02:54 ET, S&P 500 futures dropped 38 points, or 0.5%, while Nasdaq 100 futures fell 407 points, or 1.4%. Dow Jones futures edged up 27 points, or 0.1%.

The pre-market weakness followed a sharp sell-off on Wall Street during the previous session, triggered by stronger-than-expected US inflation data. The S&P 500 and Nasdaq Composite recorded their largest single-day declines since July, with AI-related stocks bearing the brunt of the selling. Investors increased expectations that the Federal Reserve might raise interest rates at its upcoming meeting, driving US Treasury yields higher and pressuring equity valuations.

Concerns persist regarding the sustainability of debt-financed expansion in the AI sector. CoreWeave shares fell more than 15% as its bonds hit new lows in secondary trading. Analysts at Vital Knowledge noted that while reported growth rates remain strong, the bar for AI companies has risen, and any slowdown in growth could dampen investor sentiment.

Despite market jitters, Anthropic reported significant revenue growth. According to The Wall Street Journal, the developer of the Claude chatbot told institutional investors that third-quarter revenue rose 45% to approximately $16.8 billion, up from $11.6 billion in the second quarter and less than $5 billion in the first quarter. The company is reportedly considering an initial public offering that could raise up to $100 billion at a valuation of roughly $2 trillion, though no definitive timetable has been set.

Taiwan Semiconductor Manufacturing Company (TSMC) also posted record results, underscoring continued demand for semiconductor infrastructure. TSMC reported a net profit of NT$763.06 billion for the quarter ended September 30, a 69% year-on-year increase that beat the NT$746.3 billion forecast cited by Reuters. Quarterly revenue climbed 50% to NT$1.49 trillion, with a gross profit margin of 66.4%. The company indicated it is considering expanding its manufacturing footprint in the United States, potentially with new facilities in Texas.

Oil prices fell on Thursday as traders assessed geopolitical risks in the Strait of Hormuz and reports that the US might ease sanctions on certain shadow fleet vessels. Brent crude futures dropped 1.9% to $104.02 per barrel, while West Texas Intermediate futures declined 1.1% to $94.04 per barrel. Maritime officials cited by Reuters said two commercial vessels sank near the strait after being struck by projectiles.

Investors are also watching upcoming economic data for further clues on inflation and labor market conditions. Economists expect September producer prices for final demand to rise 0.6% month-on-month, compared to a 0.4% increase in August, with annual inflation forecast at 5.3%. The Federal Reserve holds its two-day policy meeting on October 27 and 28.