Nasdaq Futures Slide as Global Chip Selloff Pressures Micron, AMD and Nvidia

What to Know

• Nasdaq-100 futures fell 0.73% before the U.S. open as semiconductor selling spread from Asia into U.S. premarket trading.
• SK Hynix dropped 14.65%, Samsung lost more than 13%, and South Korea’s Kospi fell 10.84% after trading was halted.
• Tokyo Electron fell nearly 11%, Kioxia dropped more than 18%, and Taiwan’s TSMC closed down nearly 3%.
• Micron was down more than 4% in U.S. premarket trading, while AMD and Marvell were off about 3% each and Nvidia was lower roughly 1.2%.
• Micron is trading below its 50-day moving average at $957.32, with the main top at $1011.77 acting as resistance.
• Technical traders are watching Micron’s last main bottom at $804.00, with a break potentially shifting attention to the $783.25 to $671.91 retracement zone.
• Amazon, Meta, Microsoft and Apple earnings later this week are viewed as key tests for the AI spending narrative.
• September E-mini Nasdaq-100 Index futures hit an intraday low at 27839.50 before rebounding, with traders watching the 27142.25 to 26208.25 retracement zone.

Chip Selling Moves From Asia Back to Wall Street

The Nasdaq came under renewed pressure before the U.S. open as a sharp semiconductor selloff in Asia rippled across global technology shares. Nasdaq-100 futures were down 0.73%, reflecting a market still wrestling with whether the AI investment cycle can justify the valuations attached to chipmakers, memory suppliers and equipment companies. S&P 500 futures were off 0.1%, while Dow futures were up about 86 points, or 0.16%, showing a clear split between technology-heavy growth exposure and more traditional market sectors.

The overnight damage in Asia was broad and aggressive. SK Hynix dropped 14.65%, Samsung lost more than 13%, and South Korea’s Kospi fell 10.84% after trading was halted. The pressure extended across the semiconductor supply chain, with Tokyo Electron down nearly 11%, Kioxia lower by more than 18%, and Taiwan’s TSMC closing down nearly 3%. Those moves gave U.S. traders a difficult setup before the opening bell, particularly as the selling was not confined to one company, one region, or one segment of the chip market.

U.S. premarket trading reflected the same concern. Micron fell more than 4%, AMD and Marvell were off about 3% each, and Nvidia slipped roughly 1.2%. The selling suggests investors are not only questioning individual earnings expectations, but also reassessing the broader AI spending chain. When pressure hits memory, processors, foundries and chip equipment at the same time, market participants often read it as a warning that expectations across the entire technology complex may have become too crowded.

AI Spending Debate Becomes a Global Market Issue

The latest weakness has put the AI buildout at the center of market risk. Large cloud and technology companies are spending heavily on infrastructure, and that spending supports demand for processors, high-bandwidth memory, chip manufacturing capacity and the equipment needed to expand production. Nvidia sells processors, SK Hynix, Samsung and Micron supply memory, and companies such as ASML, Tokyo Electron and Advantest are tied to the equipment side of the chain. When investors sell across those areas at the same time, the message is that the market is debating the durability of the entire AI capital spending cycle.

SK Hynix and Samsung are particularly important because they are major suppliers of high-bandwidth memory used in AI servers. Their steep one-session declines intensified concerns that the pressure is not simply a reaction to one weak stock or a short-term rotation. It is a broader repricing of companies connected to AI infrastructure. For U.S. chip names, that matters because their earnings outlooks are heavily linked to the same spending decisions made by hyperscale technology companies.

Reports that China is making progress in memory chips and immersion deep-ultraviolet lithography equipment are adding to the pressure. ASML fell more than 8% Monday, reinforcing concern that the issue may extend beyond near-term earnings and into longer-term competition. Investors had already assigned significant value to companies tied to the AI boom. If the competitive landscape appears to be shifting while spending returns remain under scrutiny, valuation support can weaken quickly.

Micron Technical Levels Draw Close Attention

Micron is one of the clearest pressure points in the U.S. chip trade. The stock is trading on the weak side of its 50-day moving average at $957.32, a signal technical traders generally view as evidence that near-term momentum remains negative. The 50-day moving average and the main top at $1011.77 are now being watched as resistance areas. Until Micron can recover those levels, sellers may continue to treat rallies as opportunities to reduce exposure.

The next major downside level is the last main bottom at $804.00. A weaker opening could bring that area into focus, and a break through it would likely draw attention to the long-term retracement zone at $783.25 to $671.91. Some chart watchers view these retracement zones as potential value areas, but they can also become magnets for momentum-driven selling when broader market sentiment is deteriorating. For now, the stock’s position below its 50-day average keeps the technical tone fragile.

Micron’s weakness matters beyond the company itself because memory has become a core part of the AI infrastructure trade. High-performance AI servers require advanced memory products, and investors have rewarded companies exposed to that demand. If memory suppliers begin to slide sharply, the market may ask whether end-demand expectations, pricing assumptions, or competitive dynamics are changing. That is why Micron’s chart has become a focal point for the broader semiconductor selloff.

Megacap Earnings May Decide the Next Move

The most important catalyst now is the coming earnings slate from Amazon, Meta, Microsoft and Apple. Market participants are looking for confirmation that AI spending is translating into demand, margins and cash flow. If management teams continue to raise capital expenditure plans without offering a clearer path to revenue, semiconductor sellers may stay aggressive. If executives show that AI investment is producing measurable business momentum, the group could stabilize quickly.

The sensitivity around those earnings reflects a larger market question. AI infrastructure spending has supported a powerful growth narrative, but that narrative depends on confidence that today’s investment will generate future returns. Chipmakers benefit when hyperscalers expand data centers and buy advanced hardware. However, if investors begin to doubt the payback period or the revenue opportunity, richly valued suppliers can be hit even when their current demand remains strong.

Other macro conditions have not been enough to calm the pressure. Brent is below $90 and the 10-year yield has eased toward 4.65%, but chip stocks remain under pressure. That suggests the selloff is not primarily about rates or inflation at this stage. Instead, it is about whether the AI buildout can sustain the earnings expectations and valuation multiples that have accumulated across the semiconductor complex.

Nasdaq Futures Break Key Support

September E-mini Nasdaq-100 Index futures were lower in premarket trading and earlier touched an intraday low at 27839.50 before bouncing. The contract is in a five-day retreat and the move accelerated after a break of the June 9 bottom at 28512.00. That broken level is now being watched as the nearest resistance. In fast-moving markets, former support can become resistance as traders who missed the initial exit use rebounds to reduce exposure.

Momentum remains the main driver early Tuesday. Technical traders are watching the long-term retracement zone at 27142.25 to 26208.25, with the 200-day moving average at 26967.23 sitting inside that area. Because long-term moving averages often attract dip buyers, some market participants may view that region as a potential value zone if tested. However, whether it holds may depend heavily on the tone of megacap earnings and the reaction in semiconductor shares.

The Nasdaq’s underperformance also highlights how concentrated the current pressure has become. The Dow is holding up because financials and industrials are not central to the AI semiconductor trade. The Nasdaq, by contrast, carries more exposure to the high-valuation growth names tied to AI expectations. That split shows why the chip selloff is having an outsized effect on technology futures even as other parts of the market remain steadier.

S&P 500 and Dow Show a Split Market

September E-mini S&P 500 Index futures were inching lower early Tuesday as pressure from the Nasdaq weighed on broader sentiment. The benchmark survived a test of the July 23 main bottom at 7411.75. A sustained move under that level could open the door to the June 26 main bottom at 7357.25 and the June 11 main bottom at 7292.25. The latter is viewed by some technical traders as a potential trigger point for an acceleration toward the 200-day moving average at 7128.53 and the long-term retracement zone at 7047.75 to 6895.25.

On the upside, S&P 500 traders are watching the short-term retracement zone at 7493.00 to 7540.50, along with the 50-day moving average at 7531.11. A move back through that area would help ease immediate downside pressure, but it may not fully restore confidence unless the technology sector stabilizes. For now, the S&P 500 remains caught between weakness in high-growth shares and support from parts of the market less exposed to the AI trade.

The Dow is the outlier. September E-mini Dow futures are edging higher for a third session after a successful test of the 50-day moving average at 51895 and a short-term retracement zone at 51882 to 51463.00. On the upside, traders could encounter resistance at 52674 and 53000, with the last minor top before the 53656 all-time high at 53113. The Dow’s relative strength reinforces the idea that this is not a broad liquidation across all equities, but a targeted reassessment of technology and semiconductor exposure.

What Traders Are Watching Next

Tuesday’s consumer-confidence report and earnings from Coca-Cola, Corning and Boeing add to the calendar, but the chip trade remains the dominant driver for the Nasdaq. The most important question is whether Amazon, Meta, Microsoft and Apple can reassure investors that AI spending is producing returns. If they do, the selloff could reset before turning into a deeper correction. If they do not, semiconductor sellers may continue pressing the trade lower.

Wednesday’s FOMC decision and Warsh’s press conference also add a layer of uncertainty. A message that keeps September tightening expectations alive would be another headwind for the highest-valuation names in the market. Still, the primary concern remains the relationship between AI spending and future earnings power. Until investors see stronger evidence that capital spending is converting into revenue, margins and cash flow, semiconductor volatility is likely to remain elevated.

For now, the market is sending a clear signal. The Dow is firmer, the S&P 500 is holding key support, and the Nasdaq is carrying the burden of the semiconductor selloff. That divergence places the next round of megacap earnings at the center of the market’s near-term direction. In the days ahead, guidance from the largest technology companies may determine whether the AI trade finds support or faces a more sustained correction.

Frequently Asked Questions (FAQs)

Why are Nasdaq futures falling?

Nasdaq futures are falling because a semiconductor selloff that began on Wall Street moved through Asia and then hit U.S. chip shares before the open. Nasdaq-100 futures were down 0.73% as investors reassessed the AI spending trade.

Which chip stocks are under pressure?

Micron was down more than 4% in U.S. premarket trading, while AMD and Marvell were off about 3% each and Nvidia was lower roughly 1.2%. In Asia, SK Hynix, Samsung, Tokyo Electron, Kioxia and TSMC also posted sharp declines.

Why does the Asia chip selloff matter for U.S. markets?

Asia is deeply connected to the global semiconductor supply chain. SK Hynix and Samsung supply high-bandwidth memory for AI servers, while TSMC and chip equipment companies play major roles in production. Weakness there can quickly affect U.S. chip sentiment.

What are the key Micron levels traders are watching?

Micron is trading below its 50-day moving average at $957.32, with the main top at $1011.77 acting as resistance. The last main bottom at $804.00 is the next key support, followed by the $783.25 to $671.91 retracement zone if that level breaks.

Why are Amazon, Meta, Microsoft and Apple earnings important?

Their earnings and guidance will help investors judge whether AI spending is translating into demand, margins and cash flow. Strong evidence of returns could stabilize semiconductor shares, while unclear payoffs may keep sellers active.

What levels matter for Nasdaq-100 futures?

September E-mini Nasdaq-100 Index futures hit an intraday low at 27839.50 after breaking the June 9 bottom at 28512.00. Traders are watching the 27142.25 to 26208.25 retracement zone, which includes the 200-day moving average at 26967.23.

Is the selloff affecting the whole stock market equally?

No. The Nasdaq is under the most pressure because semiconductors are central to its growth exposure. The Dow is firmer because financials and industrials are not as directly tied to the AI chip trade.

What could stop the semiconductor selloff?

Clear guidance from major technology companies showing that AI spending is producing revenue, margins and cash flow could help stop the selloff. Without that evidence, investors may continue to question semiconductor valuations.

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