Key insights
- US stock futures are sharply lower, mirroring a global sell-off driven by a significant tech decline on Wall Street. Major tech and semiconductor stocks are experiencing substantial pre-market losses, impacting futures for the S&P 500, Nasdaq 100, and Dow Jones. This downturn has spread to international markets, with Asian and European indices also trading significantly lower, particularly in the technology and semiconductor sectors. The broad-based decline suggests a negative sentiment carrying over from the previous session and impacting global equity performance.
U.S. stock futures were sharply lower on Tuesday, as global stocks sold off in the wake of a major tech decline on Wall Street.
S&P 500 futures were 1.33% lower by 5:30 a.m. E.T., while Nasdaq 100 futures slid 2.42%. Futures tied to the Dow Jones Industrial Average were last seen down 319 points, or 0.61% lower.
Sandisk fell more than 9% in the premarket to lead losses in the Nasdaq-100. Chipmakers Micron and Marvell were down more than 7%,, while components maker Seagate also shed around 7%. Intel pulled back 6.7%, while AMD and Qualcomm lost more than 5% each.
The State Street Technology Select Sector SPDR ETF (XLK) dropped 3%. The VanEck Semiconductor ETF (SMH) fell around 5%. Meanwhile, SpaceX traded 3% lower, putting it on pace for its fourth straight losing session.
Those losses add to declines seen in the previous session that dragged the S&P 500 and Nasdaq lower to start the week. The tech sell-off went on to grip international markets on Tuesday.
Asia-Pacific markets closed in the red after giving up gains from early in the session, with South Korea’s Kospi leading the region’s losses.
The benchmark index was down almost 10%, ending the trading day at 8,203.84, while Japan’s Nikkei 225 declined 3.55% to close the trading day at 69,788.38, breaking eight sessions of gains.
In Australia, the S&P/ASX 200 lost 0.33% to 8,787. Hong Kong’s Hang Seng Index fell 1.82% to close at 23,336.28, while mainland China’s CSI 300 was down 2.77% to 4,919.39.
European shares also fell sharply on Tuesday, with the pan-European Stoxx 600 down 1%.
The Stoxx 600 Technology index led regional losses, with a decline of 3%. Dutch semiconductor equipment maker ASMI and chipmaker STMicroelectronics, both down more than 6%, were among the biggest downward movers on the Stoxx 600.
“Anything AI- and tech-related is still an area of focus for retail traders. They’re just not as active in individual stocks as they have been in the past,” said Liz Ann Sonders, chief investment strategist at Charles Schwab, on CNBC’s “Closing Bell” on Monday afternoon. “Not a disinterest in the broader technology or AI space, it’s just the vehicles. I think it’s a little bit more of a focus on ETFs more broadly, as opposed to those individual stock trades.”
Sonders added that corporate earnings continue to serve as the most important underlying support for stocks at the moment.