AI Selloff Erases $1.3 Trillion Before Tech Futures Rebound

AI Selloff Erases $1.3 Trillion Before Tech Futures Rebound

US technology stocks were positioned for a possible rebound on Wednesday after a sharp two-day selloff erased nearly $1.3 trillion from the market value of Nasdaq 100 QQQ companies. Nasdaq 100 futures rose 0.6% by 2:37 a.m. in New York after the index dropped 3.3% in the previous session, while S&P 500 futures moved about 0.2% higher.

The pressure around the AI trade has continued to test investor confidence, especially as traders question whether AI-linked stocks have become too expensive after a powerful rally. The Nasdaq 100 is still about 28% higher from March 30, but volatility could remain elevated into the summer as liquidity typically becomes thinner.

In Asia, South Korean equities swung between gains and losses as investors watched the outlook for chipmaker earnings. Micron Technology MU is now the key stock in focus, with results due later today after the company became the largest contributor to the S&P 500's 7.6% gain this year. State Street's Jennifer Bender said this week's declines looked like short-term hiccups, while Goldman Sachs partner Bobby Molavi said the current market was starting to feel similar to the final months of the dot-com era, when investors became used to sudden 5% moves and began asking what could happen if a 10% drop breaks.