September S&P 500 E-Mini futures (ESU26) are down -1.26%, and September Nasdaq 100 E-Mini futures (NQU26) are down -2.47% this morning as renewed concerns about sky-high tech valuations prompted investors to revisit their holdings.
Chip and AI infrastructure stocks cratered in pre-market trading as a selloff in Korean and Japanese chipmakers fueled concerns about the sustainability of the AI-driven rally. Micron Technology (MU) slumped over -8%, Marvell Technology (MRVL) slid more than -7%, and Intel (INTC) sank over -6%. Tuesday’s selloff in chipmakers followed a retreat in megacap tech stocks a day earlier as investors questioned whether future returns could justify current heavy AI spending. The prospect of a Federal Reserve interest rate hike this year is also driving the pullback.
