Stock futures are flat Thursday after S&P 500 suffers worst day since April: Live updates

U.S. stock futures were little changed Thursday night after the S&P 500 had its worst session since April, dragged lower by investors' rotation out of megacap tech stocks.

S&P 500 futures were marginally higher. Futures linked to the Dow Jones Industrial Average were up around 0.1%, while Nasdaq 100 futures traded near the flatline.

During the main trading session, the broad market index closed 0.88% lower, and the tech-heavy Nasdaq Composite lost 1.95%. Both indexes broke seven-day winning streaks and they suffered their worst day since April 30. Investors sold their Big Tech winners, pushing Nvidia lower by 5.6% and leading to a 4.1% decline for Meta Platforms. The 30-stock Dow was the outperformer among the three major averages, inching higher by 0.08%.

On a weekly basis, the Dow is also beating the other two major averages, up nearly 1%. The S&P 500 is up 0.3% through Thursday's close, while the Nasdaq is down nearly 0.4%.

Investors' move out of tech stocks on Thursday was spurred by a consumer price index report that showed a 0.1% monthly decline in June. Traders flocked to areas of the market that will benefit from Federal Reserve interest rate cuts, including small-cap stocks. Indeed, the Russell 2000 jumped about 3.6%.

The market rotation during the session is "a taste of what's going to happen the second half of the year," Warren Pies, strategist and co-founder of 3Fourteen Research, said on CNBC's "Closing Bell."

The upcoming corporate earnings season and a credit expansion narrative will power the market to the end of the year, he added.

"We've had a pretty strong economy in a lot of ways over the last few years, but there are pockets that are really restrained by Fed interest rate policy," Pies said. He noted that