S&P 500 and Nasdaq futures drop as semiconductor stocks slide, extending June’s volatility into July amid Fed policy uncertainty.
US equity futures turned lower in early trading, led by a 1.1% decline in Nasdaq contracts, as a global tech selloff intensified. The drop follows steep losses in Asia, with South Korea’s KOSPI falling nearly 8% and Japan’s Nikkei down 2%, pressuring semiconductor stocks like Micron and Intel, which slid over 3% each.
The retreat reverses Monday’s broad advance, when tech shares drove gains across US markets. Semiconductor weakness, highlighted by Samsung’s profit miss despite record earnings, has reignited concerns over AI-driven capital expenditures and valuation sustainability.
Investors are also bracing for US inflation data, which could influence Federal Reserve policy expectations. Futures suggest a cautious open, with Dow contracts flat but S&P 500 and Nasdaq futures signaling further downside.