Tech stocks swooned, and broader equity index futures declined in Friday's premarket trading amid concerns about the profitability of AI, lingering worries about Middle East stability, and potential interest rate hikes.

Nasdaq futures were down 1.1% while S&P 500 futures fell 0.5% and Dow futures slipped 0.1% in the pre-bell session.

The tech sector was dragged down by chipmakers including Intel (INTC), down 3.4%, AMD (AMD), down 3.4%, and Nvidia (NVDA), down 1%, while memory storage firm Western Digital (WD) was down 3.8%.

Investors were spooked by reports that Microsoft-backed (MSFT) OpenAI is leaning toward delaying its initial public offering and an Iranian attack on a ship transiting the Strait of Hormuz. Inflation fears have also spiked in recent days after US President Donald Trump blocked his own bill to bring down housing costs, diminishing hopes of a rate cut.

Despite elevated security concerns in the Persian Gulf, oil prices continued a days-long slide that followed the signing of a memorandum of understanding between Washington and Tehran that saw the reopening of the Strait of Hormuz to commercial traffic.

Brent crude was down 3.3% to $72.75 per barrel while West Texas crude prices were down 3.3% to $69.58 per barrel, the lowest levels since the start of the Feb. 28 attacks by the US and Israel on Iran that sparked months of war and uncertainty.

Among the economic news expected is the release of May's goods trade gap. Imported goods are expected to exceed exports by $85.0 billion, up from a revised figure of $83.0 billion in April.

May wholesale inventories are expected to increase 0.4%, down from a 0.6% increase in April.

Analysts also expect a rise in May consumer sentiment in the monthly University of Michigan survey to 50.0, up from 48.9 in April.