Tech-heavy Nasdaq futures plunged 2.69% on Tuesday as investors priced in potential U.S. rate hikes totalling 50 basis points by December and ballooning AI buildout costs, sending Nvidia futures down nearly 3%. Mega-cap semiconductor peers Intel, Marvell Technology and AMD also tumbled between 5.5% and 7.5%.
On Tuesday morning, Nasdaq 100 futures dropped 2.69%, leading losses among U.S. stock-index futures, as traders ramped up expectations for another 25-basis point rate hike and an additional 25-basis points by year end. The S&P 500 and Dow Jones futures fell 1.45% and 0.61%, respectively, while the CBOE Volatility Index climbed to a one-week high of 20.12.
Nvidia futures slid nearly 3% in premarket trading as investors worried that elevated borrowing costs will increase the expense of debt-backed AI infrastructure builds. Other chipmakers felt the strain too, with Intel, Marvell Technology and AMD shares dropping between 5.5% and 7.5%, reflecting broader unease over valuation levels in AI-related stocks.
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