Nasdaq Futures Slide 2% While S&P Futures Sink 1%; South Korea's Kospi Index Tumbles 10% as Tech Selloff Spreads to Asian Markets

Tiger Newspress06-23 14:37

US equity futures declined on Tuesday, with a downturn in major technology stocks affecting Asian shares linked to artificial intelligence. Market participants are also monitoring developments in discussions aimed at easing tensions between the US and Iran.

S&P 500 futures were down 1.13% in Singapore, while Nasdaq 100 futures saw a sharper drop of 2.03%. This market weakness persisted despite a slight decrease in oil prices, with Brent crude trading under $78 per barrel following a US decision to grant Iran a temporary license for international oil sales.

A key Asian technology index also fell sharply, halting an eight-session advance, as some traders judged the recent surge in leading semiconductor stocks had become excessive. South Korea's primary market benchmark, the Kospi Index, dropped 10%, which activated automatic trading curbs.

Samsung Electronics Co. and SK Hynix Inc. both saw their share prices fall over 12%. The steep decline in these pivotal South Korean chipmakers indicates a rapid move by investors to secure profits, which may signal caution for US technology shares.

The positive sentiment around high-performing tech stocks diminished during US trading on Monday, with shares of SpaceX declining and focus shifting to the upcoming quarterly earnings report from memory-chip producer Micron Technology Inc.

A fund manager noted that numerous investors hold substantial profits in AI-related stocks, and any market unease could prompt them to reduce their holdings to realize those gains. The manager added that technology stocks are currently highly responsive to expectations regarding interest rates and potential central bank policy tightening.

Market sentiment remained negative as European trading approached, with futures for the Stoxx 50 Index extending losses to 1%.

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Comments

neo26000
06-23 21:26
neo26000
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