U.S. stock futures plummet, with major tech stocks leading the decline again

Deep Tide TechFlow News, June 23 — Due to large technology stocks experiencing sell-offs and transmitting to Asian artificial intelligence-related stocks, U.S. stock futures declined on Tuesday, while investors await further developments in U.S.-Iran negotiations. On Tuesday, the Asian technology sector faced heavy losses, ending an eight-day rally; Japanese and Korean markets collectively retreated, with Korean stocks plunging nearly 10%. Currently, mega-cap technology stocks generally exhibit synchronized fluctuations, with Alphabet showing weakness, and SpaceX also declining as the IPO boom subsides. Market sentiment is gradually spreading to other leading tech stocks, and a cautious attitude toward the tech sector has been reestablished. This shift contrasts sharply with last year, when almost all AI-related companies were seen as “gold mines,” and any enterprise mentioning AI was favored by the market. But now, the market is gradually entering a “performance verification” period, where investors demand that large-scale investments in AI infrastructure must deliver tangible returns.

This is especially evident in companies like SpaceX, which have negative cash flow but still raised $75 billion from IPOs. This change keeps market sentiment tense, with this week’s focus turning to Micron Technology’s earnings call. “Many investors hold AI stocks and have gained substantial profits; any volatility could prompt them to reduce positions and lock in gains,” said Jian Shi Cortesi, fund manager at Gam Investment Management. “Currently, tech stocks are also very sensitive to interest rate outlooks and the Federal Reserve’s potential rate hikes.” (Jin10)