US stock index futures fall as a selloff in semiconductors intensifies, prompting investors to rotate into other sectors

BlockBeats message: On July 17, US stock index futures fell, and selling pressure on semiconductor stocks intensified, prompting investors to look for opportunities in other market sectors. Nasdaq 100 index futures dropped by more than 2%, while S&P 500 index futures fell by more than 1%. Nvidia (NVDA.O) led the declines among the “Magnificent Seven” in pre-market trading. The Philadelphia Semiconductor Index is already close to entering a bear market, and it is expected to extend its losses into Thursday.

However, although the S&P 500 index closed down 0.5% on Thursday, among its constituent stocks 369 rose and 132 fell, showing that the overall market breadth remains healthy. Barclays strategist Venu Krishna said, “AI capital expenditure enthusiasm has started to cool, but the semiconductor sector still clearly outperforms the broader market in terms of stock performance, while software stocks continue to lag. This suggests that recent market rotation is gradual rather than decisive.” (Jin10)