U.S. financial markets are facing renewed pressure as a sharp sell-off in artificial intelligence and data-center stocks intensifies concerns about inflation, borrowing costs, and the sustainability of the AI investment boom.

On Thursday, Nasdaq futures fell more than 1%, extending losses after the Nasdaq Composite and S&P 500 recorded their steepest daily declines since July. A hotter-than-expected inflation report has increased investor concerns that the Federal Reserve could raise interest rates further.

Major technology companies and AI infrastructure firms have come under pressure. CoreWeave and Oracle continued to slide, while chipmakers including Nvidia, Micron Technology, and AMD also recorded losses in premarket trading.

The recent sell-off wiped approximately $80 billion in market value from affected AI-related companies, according to Reuters. Investors are increasingly scrutinizing the heavy borrowing and enormous capital spending required to build AI data centers.

Higher interest rates could make these projects more expensive and reduce the future value investors assign to fast-growing technology businesses.

The key question for Wall Street is whether AI-related earnings can justify the sector’s high valuations and infrastructure costs. Investors are now watching inflation data, retail sales, employment figures, and upcoming corporate earnings for clues about the direction of the U.S. economy and financial markets.

The latest volatility highlights the growing connection between Federal Reserve policy and the future of America's AI investment boom.