S&P 500 and Nasdaq-100 futures fell Thursday as concerns around tech companies overspending on artificial intelligence grew, and traders digested U.S. data that pointed to persistent inflation.

S&P 500 futures shed 0.3%, while contracts linked to the tech-heavy benchmark dropped 1.3%. Dow Jones Industrial Average futures
 outperformed, adding 150 points, or 0.3%.

CoreWeave shares dropped 3% in the premarket, putting the neocloud name on pace to build on Wednesday’s losses. The stock tumbled more than 15% in the previous session as investors grew fearful that the company was borrowing too much for its AI build-out. CoreWeave corporate bond yields also surged.

Compounding worries in the AI space, sources told CNBC that Anthropic’s revenue grew to $16.8 billion in the third quarter, with some traders concerned the AI giant’s top line might not be growing fast enough to justify the lofty gains in chipmakers.

Micron Technology and Advanced Micro Devices led the charge lower, shedding 4% and 3%, respectively. Others like Sandisk
 fell 5%, while U.S.-listed shares of Sk Hynix dropped 6%. Overnight, South Korea’s Kospi index fell more than 7%.

However, the market was supported by gains in areas outside of tech. Shares of retailer Walmart climbed almost 3%, while pharmaceutical giant Merck rose more than 1%.

Investors also reacted to more insights on the inflation front. The September reading on producer prices came in at 1.3% on the month, putting the annual inflation rate at 6.3%. That was the biggest 12-month gain since 2022. The figures were above the 0.6% and 5.5% that economists polled by Dow Jones expected.

Concerns that the Federal Reserve could tighten monetary policy more aggressively before year-end weighed on equities Wednesday after new data showed consumer prices in September rose faster than expected on a year-over-year basis.

“Today’s PPI report, after Wednesday’s CPI, confirms inflation is getting worse as energy prices stay high,” said David Russell, global head of market strategy at TradeStation. “Election or no election, prices are rising and the Fed might be forced to act.”