US Stocks-Nasdaq set for lower open as AI worries mount ahead of pivotal earnings

The Nasdaq was set to open lower on Tuesday, mirroring a cautious mood across global markets toward AI chip stocks on concerns about hefty corporate spending and rising Chinese competition, ahead of earnings from some of the biggest companies on Wall Street.

Chip majors such as Micron, Intel and Applied Materials slid in premarket trading, while U.S.-listed shares of Taiwan's TSMC and Korea's SK Hynix fell over 3% each. Nvidia dipped 0.4%.

Global markets have become increasingly volatile this month as investors scrutinize the need for more corporate spending on AI infrastructure such as semiconductors that underpinned strong gains in chip stocks in the previous quarter.

Roundhill's Memory Exchange Traded Fund lost 7.8% on Tuesday and has been trading below its 50-day moving average for the past two weeks, reflecting weak short-term momentum, while the Philadelphia SE Semiconductor Index has fallen over 20% from its all-time high hit in June.