US equity futures pointed to a sharply lower open on Tuesday, with the Nasdaq 100 tumbling 2.8% and the S&P 500 declining 1.4%.
The sell-off extended losses from the previous session, driven by a broad-based retreat in technology shares as investors grappled with mounting concerns over the sustainability of artificial intelligence spending.
The technology sector remains the primary driver of the downturn, with memory chip maker Micron sliding 7% in the session.
The technology sector remains the primary driver of the downturn, with memory chip maker Micron sliding 7% in the session.
The pressure on semiconductor stocks was compounded by reports that SK Hynix is cutting production, a move that signals potential softening demand or inventory gluts in the memory market.
These developments have intensified scrutiny on the capital expenditure cycles of major tech firms, raising questions about whether current AI investment levels are justified by near-term revenue growth.
The broad-based sell-off that began on Wall Street has since rippled across global markets, extending the sharp downturn in technology shares that started in the previous session.