U.S. equity futures dropped sharply early Tuesday as declines in South Korean memory chipmakers led to renewed concerns about the sustainability of artificial intelligence-driven gains in technology stocks. The market pullback came amid ongoing U.S.-Iran negotiations and awaited key earnings and manufacturing data.
At 4.33 p.m. (Bangkok Time), S&P 500 futures had retreated by 1.33%, while Dow Jones Industrial Average futures declined 0.59%. Nasdaq 100 futures saw a decrease of 741.25 points, or 2.42%.
Monday’s regular session saw the S&P 500 finish down 0.37% after losses in the technology sector. Meanwhile, the Nasdaq Composite slipped by 1.32%. In contrast, an advance in Caterpillar shares allowed the Dow to close 148.01 points higher, gaining 0.29%.
Monday’s trading was marked by an investor shift out of major tech names. Amazon shares dropped nearly 5%, Meta Platforms fell 2%, and Alphabet experienced its steepest daily fall in over a year, losing 5%, amid market concerns over recent departures from its artificial intelligence team to competitor firms.
Nasdaq faces further headwinds as SK Hynix and Samsung Electronics, major South Korean memory producers, each lost more than 10%, prompting increased skepticism over whether AI-fueled growth can continue to buoy U.S. stock indices.
Geopolitical developments remained in focus, with continued US-Iran discussions affecting investor sentiment. Progress was reported in the negotiations, and the US Treasury’s decision to permit Iranian oil sales through August led oil prices to touch intraday lows. On Tuesday, West Texas Intermediate crude futures slid 0.31% to $73.63 per barrel, while contracts tied to Brent crude shrunk 0.46% to $77.54.
Corporate results are also in the spotlight. FedEx and Cerebras Systems are set to announce their earnings later Tuesday, with Cerebras releasing its first financial results since its May initial public offering. Carnival and Korn Ferry will post their quarterly numbers ahead of the opening bell. In addition, market participants are anticipating preliminary S&P Global PMI data for manufacturing and services in June.
