S&P 500 futures are down 0.8% with Nasdaq futures down 1.5% on the day currently.
It’s looking rough out there after the heavy selling yesterday, which translated into a big selloff in Asia as well earlier today. The Nikkei closed down by 4% and KOSPI down by over 6% and that is helping to set a more negative backdrop as we look towards the US open later.
Similar to yesterday, AI-related firms and chipmakers are the ones having it rough. Here’s a look at how some of the more notable names are faring in pre-market:
- Nebius -0.5%
- Astera Labs -2.5%
- Broadcom -1.9%
- Arm Holdings -2.6%
- Intel -2.7%
- Micron 0.0%
- Sandisk +0.6%
- AMD -2.4%
- Nvidia -2.7%
And even some of the big names in tech are observing a rough setting ahead of the Wall Street open later:
- Microsoft -2.0%
- Meta -1.5%
- Alphabet -1.2%
- Amazon -1.5%
- Tesla -1.7%
As such, it’s not just contained to semiconductors and certain chipmakers – in which the struggles are well documented in July so far. There is a sense now that the breadth of the selloff is starting to widen and that’s not a good look.
Alongside the fundamental story of the AI rally taking a knock as investors demand profitability to back up the large capex spending, the renewed conflict in the Middle East and inflation worries sparking a more hawkish Fed are also key factors in tempering the mood in the equities space.
And that just adds to the technical considerations on the charts here, which just puts more pressure on the overall backdrop.
It feels like there might be a bigger flush to come before the dip buying comes back for tech shares to begin the summer.
This article was written by Justin Low at investinglive.com.