Nasdaq futures fall 1% as Asian chip selloff hits markets

what happened

Technology stocks came under fresh pressure on Tuesday, according to Newsmetry API, with Nasdaq futures down about 1% and European futures off 0.4%. The Nasdaq Composite had declined 0.4% in Monday’s session to 27,245.90, a 120-point loss. The S&P 500 slipped 0.1% to 7,807.24, while the Dow Jones rose 196 points to 51,850.55. The divergence points to a rotation between sectors rather than indiscriminate equity selling. Micron fell 3.9% and Lumentum nearly 11%, while reports of technological progress at Chinese memory maker CXMT heightened concern about competition in AI infrastructure.

There were still notable gainers in US technology. Meta advanced 3.4%, ending a four-session losing streak after unveiling its Muse Wonder artificial-intelligence models. Salesforce rose more than 4% after Bank of America upgraded the stock. Chipotle dropped about 4% after Starbucks rejected reports that it planned to acquire the restaurant chain. The denial removed a potential takeover driver and shifted focus back to company operations. Starbucks continues its turnaround under Brian Niccol, who previously ran Chipotle.

Asian markets extended the pressure. South Korea’s Kospi plunged more than 6%, prompting a five-minute trading suspension; Japan’s Nikkei lost almost 3% and Taiwan’s benchmark declined 2%. The dollar index moved above 102.50 during early Asian trading. EUR/USD was near $1.1159, GBP/USD around $1.3209 and USD/JPY close to ¥158.50. Brent crude eased to roughly $106 a barrel while holding most of Monday’s gain, as traders balanced Gulf supply risks with the prospect of more Russian diesel entering global markets. Gold slipped toward $4,164 an ounce and silver stayed near $60, pressured by the stronger dollar. Bitcoin recovered to about $82,900 after falling roughly 2.3% on Monday. The 10-year US Treasury yield edged down toward 5.20%.

JPMorgan, Goldman Sachs, Citigroup and Wells Fargo report on Tuesday, beginning the major-bank earnings season. Markets will assess loan demand, deposit expenses, trading income and provisions for bad loans alongside headline profit. US consumer-price data are due Wednesday at 8:30 a.m. ET; forecasts call for annual headline inflation near 3.7% and core inflation around 2.5%. Traders see about a 20% chance of an October Fed hike and nearly 90% odds of an increase in December. ASML reports Wednesday and TSMC Thursday, offering further evidence on semiconductor orders and AI spending; analysts expect TSMC quarterly profit to climb about 65%. US producer prices and retail sales arrive Thursday.

why it matters

The chip selloff raises the market’s sensitivity to competition and the outlook for AI investment. Bank results and US inflation data may influence expectations for Federal Reserve policy, with implications for equities, currencies and precious metals.

instruments