Nasdaq 100 E-minis fell 331.5 points, or 1.1%. (EPA Images pic)NEW YORK: Fears of a potential hit to artificial-intelligence (AI) funding due to higher interest rates drove Nasdaq futures down more than 1% on Thursday, deepening a selloff in AI-related stocks.

The Nasdaq and the S&P 500 marked their biggest one-day drop since July on Wednesday, after hotter-than-expected inflation data fueled expectations of more interest rate hikes from the US Federal Reserve and sent tech stocks tumbling.

Further denting sentiment on Thursday, TSMC, the world's largest manufacturer of advanced chips, struck a cautious note for 2027 due to macroeconomic uncertainties after reporting its sixth consecutive record quarterly profit.