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AI Stocks · Global Markets · Semiconductors · Technology Selloff
US equity futures declined on Tuesday, with Nasdaq 100 futures dropping 2.03% and S&P 500 futures falling 1.13% in Singapore, as a technology selloff spread from major US tech stocks to Asian shares linked to artificial intelligence, notably causing South Korea's Kospi Index to tumble 10% and activate automatic trading curbs.
This market weakness persisted despite Brent crude trading under $78 per barrel following a US decision to grant Iran a temporary license for international oil sales. The downturn in Asia saw Samsung Electronics Co.
and SK Hynix Inc. shares fall over 12%, indicating rapid profit-taking by investors who judged the recent surge in semiconductor stocks excessive, according to Tiger Newspress.
Positive sentiment around high-performing tech stocks diminished during US trading on Monday, with SpaceX shares declining and focus shifting to Micron Technology Inc.'s upcoming earnings. A fund manager noted that investors hold substantial profits in AI-related stocks and will reduce holdings amid market unease, adding that technology stocks are highly responsive to expectations regarding interest rates and potential central bank policy tightening.
European trading also saw negative sentiment, with Stoxx 50 Index futures extending losses to 1%.