US stock index futures plunge, with major tech stocks leading the decline again

Golden Ten Data reported on June 23 that U.S. stock futures fell on Tuesday as large technology stocks faced sell-offs that spread to Asian artificial intelligence-related stocks, while investors await further progress in U.S.-Iran negotiations. On Tuesday, the Asian technology stock sub-sector suffered a heavy blow, ending an eight-day winning streak, with Japanese and Korean stock markets collectively pulling back and the Korean stock market plunging nearly 10%. Currently, mega-cap technology stocks are generally trending in sync. Alphabet showed weak performance, and SpaceX also declined as the IPO boom faded. The market sentiment is gradually spreading to other leading technology stocks, prompting a more cautious approach towards the technology sector. This stands in stark contrast to last year, when almost all AI-related companies were seen as “goldmines,” and any company mentioning AI was enthusiastically pursued by the market. Now, however, the market is gradually entering a validation period where investors demand that large-scale investments in AI infrastructure must deliver actual returns. This is especially prominent in companies like SpaceX, which have negative cash flow but still raised $7.5 billion from their IPO. This shift has kept market sentiment on edge, with this week’s focus turning to Micron Technology’s earnings call. “Many investors are holding AI-related stocks and have seen considerable profits. Any volatility may prompt them to reduce holdings and lock in gains,” said Jian Shi Cortesi, a portfolio manager at Gam Investment Management. “At present, technology stocks are particularly sensitive to the interest rate outlook and the potential for further rate hikes by the Federal Reserve.”