US STOCKS-Wall St set for muted open as tech wobble persists; Tesla gains

By Tharuniyaa Lakshmi and Purvi Agarwal

Oct 16 (Reuters) - US stock index futures pointed to a subdued open on Friday, as technology stocks came under pressure once again on worries about cracks building in the AI trade, though gains in Tesla offered some support.

The electric vehicle maker TSLA.O rose 3.3% in premarket trading after unveiling a redesigned Roadster, powered by rocket-style thrusters, developed in collaboration with SpaceX.

Elon Musk's rocket and space technology company SPCX.O was up marginally.

Caution persisted in the AI sector as Nvidia-backed CoreWeave CRWV.O slipped 5.5%, after Thursday's rebound, on lingering concerns about the data centre operator's debt load. Its bonds sold off sharply this week, pushing yields to above 15%.

Other neocloud firms Nebius Group NBIS.O and Iren IREN.O dipped over 3% each while chipmakers Micron Technology MU.O and Intel INTC.O fell 2% and 1.6%, respectively.

AI stocks have cratered this week as investors who have crowded into bets all along the AI supply chain worry that data centre operators might not turn profitable in time to repay debts, particularly with borrowing costs expected to rise.

A pullback in memory chip stocks earlier this week on rising fears of Chinese competition and concerns over CoreWeave's debt "provided investors with an excuse to cut their exposure to all AI-adjacent companies," said David Morrison, senior market analyst at Trade Nation.

"There's still some caution out there. If it is just a touch of profit-taking after yesterday's rebound, or something more serious... time will tell," said Morrison.

Reuters reported, citing people familiar with the matter, that some current Anthropic investors and prospective investors in its upcoming IPO are weighing a lower valuation, amid concerns over ballooning AI financing costs.

The selloff in AI stocks sparked a rotation into defensive sectors such as healthcare on Thursday, helping the main indexes close slightly higher.

The S&P 500 and Nasdaq were set to post weekly losses as an AI-led rout, mixed earnings from big banks and inflation data weighed on sentiment through the week.

The Dow, however, remained on track for a weekly advance.

At 8:43 a.m. ET, Dow E-minis were up 41 points, or 0.08%, S&P 500 E-minis were up 10.5 points, or 0.13% and Nasdaq 100 E-minis were down 59.75 points, or 0.20%.

Oil prices steadied on Friday, remaining above the $100-a-barrel mark. O/R

Hotter-than-expected consumer and producer inflation reports this week have confirmed that price pressures are broadening out beyond energy products.

Federal Reserve Chair Kevin Warsh also noted that a spending surge was boosting inflation. He, however, said the US economy remained resilient and was benefiting from an AI-driven investment boom.

Markets increasingly expect the Fed to keep interest rates unchanged this month.

Among other movers, property-casualty insurer Travelers TRV.N dropped 3.2% after reporting third-quarter results.

Varonis Systems VRNS.O climbed 2.8% as Thoma Bravo's Proofpoint agreed to buy the data security firm in a $6.3 billion all-cash deal.

Netflix NFLX.O appointed former Disney executive Peter Rice as chief content officer on Thursday. Its shares were down 3.6% before the bell.