Pre-Market Update: Nasdaq Futures Fall as Chip Sell-Off Deepens on AI and China Fears

TLDR

• Nasdaq 100 futures dropped nearly 1% Tuesday as a global chip sell-off continued
• South Korea’s Kospi index fell over 10%, with Samsung and SK Hynix down 13–14%
• Nvidia is reportedly exploring a $250 billion funding backstop for OpenAI, raising circular financing concerns
• Chinese competition in AI and chip manufacturing is weighing on US tech sentiment
• The Federal Reserve begins its two-day policy meeting Tuesday, with a rate decision due Wednesday

Tech stocks faced fresh pressure Tuesday as a deepening sell-off in semiconductor shares rattled markets. Concerns about AI financing and Chinese chip competition drove the losses.

Nasdaq 100 futures fell nearly 1% before the bell. S&P 500 futures dropped 0.1%. Dow Jones Industrial Average futures bucked the trend, rising around 0.6% as investors focused on earnings.

Chip Stocks Lead the Decline

The sell-off started Monday after reports that a Chinese state-backed company is mass-producing chip-manufacturing machines. That news spooked investors and spread into Asian markets overnight.

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