Nasdaq Futures Steady as AI Selloff Pauses

By Joe Stonor

Investors paused a selloff in artificial-intelligence stocks after the Nasdaq notched its worst day since June in the previous session, but sentiment was muted as oil prices continued to rise.

Futures for the tech-heavy Nasdaq inched up 0.2%, but global AI stocks struggled to mount a significant rally. The Kospi in South Korea nudged up 0.3% but continued to trade near lows not seen since April. SK Hynix outperformed, however, rising 4.4% after the group called off a listing of its memory-chip unit in the U.S. Investors continue to reappraise the AI trade, with greater scrutiny placed on the borrowing behind the AI buildout.

"Financial markets are navigating a structural shift as AI valuation multiples compress," said Tickmill Group strategist Patrick Munnelly.

Outside of tech, stock futures were mixed, with futures for the S&P 500 flat, while Dow Jones Industrial Average futures slipped 0.3%. Indexes were broadly higher in Asia, with Hong Kong's Hang Seng index adding 0.8% while the Shanghai Composite gained 0.9%.

Oil prices rose as investors gauged the risk of a return to direct hostilities between the U.S. and Iran. Brent crude oil contracts rose nearly 1% to top $114 a barrel, with the benchmark trading at highs not seen since May. The U.S. is preparing options for military action against Iran and is moving more forces toward the region, The Wall Street Journal reported.

Higher energy prices put pressure on European stocks. Alongside the run-up in oil prices, benchmark gas prices on the continent hit their highest levels since the end of 2022. The Europe-wide Stoxx 600 slipped 0.3%.

French government bonds continued to hold the limelight in sovereign debt markets. Ten-year OATs slipped 2.7 basis points but remained above 5.050%, close to multidecade highs. U.S. Treasurys weakened slightly after a strong rally in the last session. Ten-year Treasury yields climbed 2.4 basis points but held under 5%, while 30-year Treasury yields traded around 5.300%.

The dollar nudged higher while bitcoin rose slightly to trade around $81,600. Gold remained under pressure, with futures falling 0.9% to $4,025 a troy ounce in New York.

For the day ahead, ratings agency Moody's will give an update on its rating of France's sovereign debt. Data releases include flash PMIs for Europe and the U.S., as well as the University of Michigan's final consumer sentiment index for the U.S. in October.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

October 23, 2026 04:54 ET (08:54 GMT)