Nasdaq futures slide 2.7% as tech selloff deepens on AI doubts

A global technology selloff wiped out more than $400 billion in market value as AI valuation concerns and an OpenAI IPO delay rattled investors.

Nasdaq 100 futures tumbled 2.7% as a global tech rout deepened, driven by AI valuation concerns and a report OpenAI may delay its public listing.

"SpaceX is jumping on the bond train to fund excessive AI and infrastructure spending, reviving concerns that Big Tech may be spending too much on AI infrastructure," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

S&P 500 futures sank 1.4%, while Dow Jones Industrial Average futures slipped 0.5%. The CBOE Volatility index climbed 2.84 points to 20.12, its highest in more than a week. Semiconductor stocks led the decline, with Nvidia falling 3.2% in premarket trading, Advanced Micro Devices dropping 6.1% and Intel sliding 7.4%. Alphabet lost 2.4% after declining 5% on Monday.

The selloff puts focus on Micron Technology's earnings due Wednesday, which will offer a read on memory chip demand. The Personal Consumption Expenditures index, the Federal Reserve's preferred inflation gauge, is due Friday, with economists expecting a reading of about 4.1% — more than double the central bank's 2% target.

The rout extended a brutal session that saw the Philadelphia SE Semiconductor Index hit a record high Monday before reversing. SpaceX notched its third straight day of losses, falling another 3.8% in premarket trading after dropping 16.4% on Monday, as the company confirmed a debt offering to fund AI infrastructure.

In Asia, South Korea's KOSPI index triggered a circuit breaker, falling more than 8% as memory chipmakers SK Hynix and Samsung Electronics each plunged more than 12%. Japan's Nikkei 225 fell 3.6%, and Hong Kong's Hang Seng Index dropped 1.8%.

The New York Times reported Thursday that OpenAI is considering delaying its public listing until next year, with the AI startup targeting a valuation of up to $1 trillion. Chief Executive Officer Sam Altman has told advisers that lowering the valuation target is a non-starter, according to the report. The potential delay adds to growing skepticism about AI sector valuations after a monthslong rally.

Treasury yields edged lower, with the two-year note slipping about four basis points to 4.19% after touching its highest level since February 2025 in the prior session. Traders now expect the Federal Reserve to hike borrowing costs by a total of 50 basis points by December, according to CME Group's FedWatch tool, up from expectations for a single 25-basis-point increase two weeks ago.

Crude oil fell as the US issued a 60-day waiver on Iran oil sanctions after the first round of nuclear talks showed progress. FedEx and Cerebras Systems are scheduled to report earnings later Thursday, with Cerebras's results marking the AI chip company's first since its IPO in May.

This article is for informational purposes only and does not constitute investment advice.