US Tech Stocks Drop on AI Spending and Fed Concerns
Nasdaq 100 futures fell nearly 3% on Tuesday as investors pulled back from megacap technology and semiconductor stocks amid rising debt-funded AI spending. Markets are also pricing in a more hawkish Federal Reserve outlook with expectations growing for a second interest rate hike by December.
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United States equity futures fell Tuesday morning as a tech-led selloff threatened to wipe $1 trillion from the Nasdaq 100’s market value. Heavy losses in semiconductor and megacap stocks follow growing investor skepticism over debt-funded AI infrastructure spending and a hawkish Federal Reserve outlook. The shift reflects a crowded AI trade facing valuation pressure as traders price in a second interest rate hike by December.
