Technology Stocks Face Continued Sell-off Amid AI Spending Concerns and Rising Borrowing Costs

U.S. stock index futures saw a slight uptick on Friday, following a significant technology-led sell-off on Thursday that resulted in the S&P 500 and Nasdaq experiencing their steepest one-day losses in a month. Investors remain cautious due to mounting capital expenditure plans and increasing cash burn among major technology companies, particularly those heavily invested in artificial intelligence. Earnings reports from firms like Alphabet and Tesla have fueled questions regarding the profitability of the AI boom. This sentiment has also affected tech bonds, with reports indicating widening credit spreads as investors show reluctance to finance memory chip purchases.