Nasdaq Futures Fall as Global AI Selloff Intensifies
By Joe Stonor
Nasdaq futures fell sharply as a selloff in artificial-intelligence stocks intensified amid heightened fears of Chinese competition, while a fall in oil prices and safe-haven demand provided some relief for Treasury yields.
Asian AI stocks cratered after Chinese chip maker CXMT said it achieved a major breakthrough in memory technology that would allow it to produce more efficient chips. The release added to market jitters prompted by comments from Broadcom Chief Executive Hock Tan, who compared AI investors to casino gamblers.
Trading in the Korean Kospi was paused amid heavy selling, with the index closing 5.5% lower as chip makers Samsung Electronics and SK Hynix dropped 7.4% and 10% respectively. Japan's Nikkei 225 fell 1.8%. In Europe, ASML--the continent's most valuable company--dropped 3.2%.
In the U.S., Nasdaq futures were 0.6% lower as chip makers extended losses. Intel dropped 2%, while Micron fell 2.5% premarket. Investors rotated instead into "Magnificent Seven" stocks, with Meta and Microsoft gaining.
Elsewhere, Dow Jones Industrial Average futures rose by 0.7% on lower oil prices, while futures for the S&P 500 were flat. Brent crude oil dropped 1.2% to trade around $105.30 a barrel as traders weighed the prospect of increases in Russian diesel supply against escalating attacks on Saudi Arabia. The fall could be linked to technical factors after recent gains, ANZ research analysts said.
Treasury yields eased in line with the fall in oil after the holiday break in trading Monday. The 10-year Treasury yield last traded five basis points lower at 5.194%, while 30-year yields fell 4.4 basis points to 5.555%.
The dollar weakened against a basket of global currencies, lifting gold and bitcoin. New York gold futures added 0.5% to trade above $4,200 a troy ounce, while bitcoin rose 1% to around $83,900.
For the day ahead, U.S. banks J.P. Morgan, Citi, Goldman Sachs and Wells Fargo all report earnings. Healthcare groups Johnson & Johnson and United Health are also expected to post earnings.
Write to Joe Stonor at josephmichael.stonor@wsj.com
(END) Dow Jones Newswires
October 13, 2026 04:41 ET (08:41 GMT)
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