- US stock futures turned mixed to lower amid renewed selling pressure on AI-linked chip stocks
- Micron, Intel, and SanDisk shares fell up to 3% in premarket trading
- Nasdaq-100 futures declined 0.31%, reflecting fragile sentiment on AI investments
US stock futures turned mixed to lower on Tuesday as artificial intelligence-linked chip stocks came under renewed selling pressure, reversing part of the previous session's gains. Micron Technology, Intel and SanDisk were among the stocks trading in the red before the opening bell, with losses of up to 3%.
Micron shares fell 2.49% to $882.35 in premarket trade, reversing part of the 2.97% gain recorded in the previous session, when the stock closed at $904.90. SanDisk declined 2.72% to $1,333.77 after ending the previous session 5.53% higher at $1,371.12.
Intel shares slipped 1.12% to $91 in premarket trading, following a 2.43% rise to $92.03 in the previous session.
The reversal in chip stocks put the Nasdaq-100 futures under pressure, highlighting the fragile sentiment surrounding AI-related investments following last week's selloff. The index's futures had declined 0.31% in early trading in the earlier market update.
The latest weakness follows a largely positive session on Wall Street on Monday. The S&P 500 rose 0.4%, while the Nasdaq Composite gained more than 1%. Nvidia advanced 1.4%, Tesla jumped 3.8% and Alphabet shares added around 1%.
The rebound had offered some relief after last week's sharp losses, when concerns over rising borrowing costs and heavy spending on artificial intelligence infrastructure weighed on technology stocks. Investors have increasingly scrutinised whether companies investing heavily in AI can generate sufficient returns to justify their spending.
The pressure on AI-linked stocks also comes as investors assess corporate earnings for clues about the durability of the technology investment cycle. CoreWeave, which lost more than 25% last week, attempted to recover after Goldman Sachs upgraded the stock to buy, although its early gains faded and it ended Monday slightly lower.
Investors are also preparing for a busy earnings calendar. United Airlines is scheduled to report results after Tuesday's market close, while General Motors is due to release its numbers before the opening bell. Around 70 S&P 500 companies are expected to report results during the week.
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Housing starts and pending home sales data are also due on Tuesday, adding to the economic indicators investors will monitor for clues about the health of the US economy.
Across Asia, markets mostly declined on Tuesday despite the overnight gains on Wall Street. South Korea's Kospi fell 3.73%, Japan's Nikkei 225 dropped 1.3%, and Australia's S&P/ASX 200 slipped 0.33% to 8,816.9.
The renewed weakness in chip stocks suggests investors remain cautious, even as broader US equities attempt to recover from last week's losses.
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