US Stock Futures Plummet as Major Tech Stocks Lead Decline

On June 23, US stock futures fell on Tuesday due to a sell-off in major tech stocks, which also affected Asian AI-related stocks. Investors are awaiting further developments in US-Iran negotiations. Asian tech sectors faced significant setbacks on Tuesday, ending an eight-day rally, with stock markets in Japan and South Korea experiencing a collective pullback, and South Korean stocks plunging nearly 10%. Currently, large tech stocks are exhibiting synchronized volatility, with Alphabet showing weakness and SpaceX declining as the IPO frenzy subsides. Market sentiment is gradually shifting towards caution regarding other leading tech stocks. This change starkly contrasts with last year when nearly all AI-related companies were viewed as 'gold mines,' and any mention of AI attracted market enthusiasm. However, the market is now entering a verification phase where investors demand that large investments in AI infrastructure yield actual returns. This is particularly evident in companies like SpaceX, which has negative cash flow yet raised $75 billion from its IPO. This shift has kept market sentiment tense, with this week's focus turning to Micron Technology's earnings call. 'Many investors hold AI stocks and have made substantial gains; any volatility could prompt them to reduce their positions to lock in profits,' said Jian Shi Cortesi, a fund manager at GAM Investment Management. 'Currently, tech stocks are particularly sensitive to interest rate prospects and potential rate hikes by the Federal Reserve.'