Nasdaq futures fell early Wednesday as a selloff in semiconductor stocks deepened. Investor unease mounted over the pace and profitability of the massive artificial intelligence infrastructure buildout.
Major chip stocks continued to slide following recent warnings about slowing demand. The decline weighed heavily on the broader technology sector, dragging down the Nasdaq composite index.
The Dow Jones Industrial Average also pointed lower in pre-market trading. The broader S&P 500 futures followed suit, reflecting a risk-off mood across markets.
Investors are questioning whether the rapid expansion of AI data centers can sustain current spending levels. Recent earnings reports from key chip suppliers have hinted at softer orders ahead.
The selloff has erased significant gains from earlier this year. Traders are now watching for further guidance from major tech companies in the coming weeks.
Bond yields edged lower as investors sought safer assets. The 10-year Treasury yield slipped amid the flight to quality.
Market volatility is expected to remain elevated. Analysts say the AI trade is facing its first serious test of investor confidence.
