Nasdaq futures dropped sharply as investors weighed growing concerns about a potential safety-first AI slowdown, pressuring tech stocks. The Wall Street Journal Markets reported that Tim Cook and other executives have signaled caution around AI development, fueling worries about regulatory hurdles and delayed product timelines.

Oil prices climbed, supported by supply constraints and upbeat economic data from 123 Main St, while Treasury yields edged higher. Elon Musk joined the chorus of tech leaders urging a measured approach to AI deployment, adding to market jitters.

The selloff hit megacap growth names hardest, with shares of major platforms sliding in premarket trading. Investors are now pricing in a more cautious stance from policymakers, weighing the balance between innovation and oversight. With earnings season underway, attention remains on how companies navigate the evolving AI landscape and its impact on future revenue streams.