U.S. futures fall as Nvidia and chip stocks weaken

Highlights

Nasdaq-100 futures fell 1.42%.
Chip stocks led the selloff.
AI spending concerns pressured Nvidia, Micron, and Intel.
U.S.-Iran tensions added to market caution.

Nasdaq 100 futures traded at 28,810, down 1.42%. Dow Jones futures fell 0.63% to 52,455, while S&P 500 futures lost 0.77% to 7,519.75. The pressure was concentrated in semiconductor and AI-linked technology stocks, CNBC reported.

Chip stocks lead the retreat

U.S.-listed chip stocks fell in premarket trading, with the iShares Semiconductor ETF down 3.7% and VanEck’s semiconductor ETF lower by 3.4%.

Applied Materials and Lam Research each lost about 5%. Intel and KLA were down more than 4%, while Arm and Micron each fell 4%. Nvidia, the company most closely tied to the AI trade, dropped about 3%.

The move extended losses from the previous session and put the VanEck Semiconductor ETF on track for a 6.9% weekly decline, its third weekly loss in four weeks. The broader indexes were also lower for the week, with the Nasdaq down 1.5%, the S&P 500 off 0.6%, and the Dow down 0.2%.

Asia and Europe join the selloff

The weakness was global. Japan’s Nikkei 225 closed 4% lower, while Australia’s S&P/ASX 200 fell 0.5%. Mainland China’s CSI 300 lost 3.6%. South Korean markets were closed for a public holiday.

European chip names also came under pressure. Dutch semiconductor equipment makers ASMI and ASML fell 5.4% and 4.4%, respectively. STMicroelectronics dropped 7%, Infineon lost 5.6%, and BE Semiconductor fell 5.3%.

The selling reflects a growing debate over AI capital spending. Investors are reassessing whether the pace of investment in chips, data centers, and related infrastructure can continue without creating excess capacity or weaker returns.

Risk spreads beyond tech

Geopolitics added another layer of pressure. The U.S. said it completed a sixth consecutive evening of strikes against Iran, targeting military and maritime capabilities. Iranian officials said they targeted U.S. forces in Syria and Bahrain.

The renewed escalation has disrupted energy flows through the Strait of Hormuz, a route that normally handles about 20% of global oil traffic. That leaves markets facing two risks at once: a valuation reset in AI-linked stocks and renewed pressure on energy routes.

Netflix also weakened after hours, falling nearly 10% after its third-quarter revenue forecast disappointed investors. Together, the moves suggest traders are reducing exposure to growth stocks as earnings, AI spending, and geopolitical risks come back into focus.

Earlier, we reported that oil rises as Gulf tensions deepen.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.