Global Tech Sell-Off Weighs on U.S. Futures and Indian IT Stocks
New Delhi — U.S. stock futures fell sharply Tuesday as a global sell-off in technology shares renewed concerns over whether heavy investment in artificial intelligence can generate returns sufficient to justify elevated market valuations.
Nasdaq 100 futures dropped more than 2%, while S&P 500 futures declined over 1% in premarket trading. Dow Jones futures performed comparatively better, falling about 0.4%.
The sell-off followed a steep decline in South Korea’s semiconductor sector, a critical part of the global AI supply chain.
South Korea’s benchmark KOSPI index plunged 10%, prompting the Korea Exchange to activate a market-wide circuit breaker amid heavy selling by foreign and institutional investors.
Shares of Samsung Electronics and SK hynix fell more than 12% each. The declines came amid reports that SK hynix could slow the expansion of its AI memory-chip production and shift more attention toward conventional DRAM products, raising concerns about future AI-related demand and spending.
The weakness spread across Asian markets, with the MSCI Asia Pacific Information Technology Index falling nearly 5% and ending an eight-session winning streak.
European markets also pointed toward a weaker opening, with Euro Stoxx 50 futures declining more than 1%.
AI-linked stocks have been among the strongest drivers of global equity markets this year, helping major indexes reach record highs despite geopolitical tensions and elevated interest rates.
Investors, however, have increasingly questioned whether massive spending on AI infrastructure, data centers and advanced semiconductors will produce returns strong enough to support current valuations.
Those concerns were also reflected in a sharp decline in SpaceX shares, which fell 16%. The stock extended its three-day decline to 23%, wiping out more than $600 billion in market value.
The selling followed reports that SpaceX is seeking to raise at least $20 billion through its first investment-grade bond offering to finance its artificial intelligence ambitions.
Easing tensions in West Asia and lower oil prices provided little relief as investors remained focused on technology valuations and the sustainability of the AI-driven market rally.
Indian technology stocks also came under pressure. The Nifty IT index fell as much as 2.34%, or 648.9 points, to an intraday low of 26,979.65 from its previous close of 27,628.55.
The benchmark Sensex and Nifty indexes declined by as much as 1% during the session. (Source: IANS)
