Topline
Global markets and U.S. futures slumped early on Tuesday, led by a major selloff in tech and chip stocks amid concerns about the AI-driven stock rally and potential high U.S. interest rates.
The global selloff was led by a rout in AI chipmaker stocks, with memory chipmaker Micron’s shares slumping more than 8% in premarket.
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Key Facts
In early trading on Tuesday, the tech-heavy NASDAQ Futures fell to 29,874.50 points, down more than 2.5% from Monday’s close.
The benchmark S&P 500 Futures dropped 1.2% to 7,448.25 points, while Dow Futures fell 0.37% to 51,926 points.
The U.S. Futures slump follows a massive selloff in South Korea earlier on Tuesday as the country’s benchmark KOSPI Index dropped more than 8%—triggering a circuit breaker—led by a 12% rout in the stock prices of memory chipmakers SK Hynix and Samsung.
In the U.S., shares of memory chipmaker Micron—which has surged in recent months amid soaring AI-driven demand—fell more than 8.5% to $1,106.71 in premarket trading.
Japan’s Nikkei 225 index and Hong Kong’s Hang Seng Index ended their trading days in the red, falling 3.55% and 1.82% respectively, while key European indices were also down.
What About Major U.S. Tech And Chipmaker Stocks?
Chipmaker Nvidia’s shares dropped more than 3.15% to $202 in premarket trading early on Tuesday, following a nearly 1% slump on Monday. Rival chipmaker AMD’s shares fell 6.1% to $518 in early trading, while Intel’s stock dropped 7.36% to $130.63. Google, whose shares fell more than 5% on Monday, was down a further 2.39% in the premarket early on Tuesday. Shares of Elon Musk’s SpaceX, which dropped 16.43% on Monday, slid to $148.72 in the premarket—down another 3.8%.
Tangent
The South Korean market rout slashed more than $4.6 billion from Samsung Executive Chair Jay Y. Lee’s fortune on Tuesday, according to Forbes’ estimates. Despite this, Lee remains Korea’s richest person with an estimated net worth of $36.1 billion.