Pre-Market Update: Nasdaq Futures Plunge as Chip Sell-Off Sparks AI Trade Doubts

TLDR

• Nasdaq 100 futures dropped 2.8%, S&P 500 futures fell 1.4% in pre-market Tuesday
• South Korea’s KOSPI fell 10% after Samsung Electronics and SK Hynix each dropped over 12%
• AI doubts grew after Nobel Prize-winning scientist John Jumper left Google for Anthropic
• Bitcoin fell 2% to $62,883, reflecting broader risk-off sentiment
• Micron earnings Wednesday are now closely watched as a demand signal for memory chips

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Nasdaq 100 futures dropped sharply Tuesday morning as a global chip sell-off rattled markets and raised fresh questions about AI valuations.

Nasdaq 100 futures fell 2.8%. S&P 500 futures dropped 1.4%. Dow Jones Industrial Average futures slid around 270 points, or 0.5%, though the Dow held up better due to its smaller tech exposure.

Nasdaq 100 Sep 26 (NQ=F)

Chip Stocks Take the Hardest Hit

South Korea’s KOSPI index tumbled 10% on Tuesday, dragged down by sharp losses in two of the world’s largest memory chip makers.

Samsung Electronics and SK Hynix each fell more than 12%. The sell-off in Seoul added to growing concerns that AI-related chip demand may have been priced too high.

Micron shares dropped 10% in pre-market trading, one day after closing at a record high. Its earnings, due Wednesday, are now being watched closely for clues on memory chip demand.

Nvidia, AMD, and Broadcom also fell in pre-market, continuing a broader chip stock decline.

Alphabet Drops After Key AI Researcher Departs

Sentiment took a hit after John Jumper, a Nobel Prize-winning AI research scientist, announced he would leave Google to join Anthropic.

The news triggered a sharp drop in Alphabet stock on Monday and added fuel to the broader tech sell-off heading into Tuesday.

SpaceX shares also extended their losses, threatening to push the company’s market value below $2 trillion after a three-day slide.

Bitcoin Falls as Risk Appetite Drops

Bitcoin fell 2% to $62,883 over the past 24 hours, tracking the broader drop in risk assets.

The cryptocurrency has remained range-bound as geopolitical uncertainty and Federal Reserve rate concerns weigh on investor appetite.

The dollar hit a one-year high, supported by safe-haven flows and bets on further Fed rate hikes.

The Fed is expected to raise rates more than once in 2026, according to current market pricing, as inflation remains elevated.

Oil prices dipped early before steadying. Brent crude futures dropped to around $76.45 a barrel and WTI fell to $72.55, though prices later traded broadly flat after the US issued a 60-day sanctions waiver on Iranian oil.

FedEx and Cerebras Systems are both due to report earnings Tuesday. Cerebras Systems will post its first results since going public in May, making it a closely watched event for the AI chip sector.

The 10-year Treasury yield slid 3 basis points to 4.48%, as investors moved toward safer assets.

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