Stock futures fell as chip stocks deepened a global rout. Traders cited AI spending fears, high valuations, oil tensions, and key US inflation data due Wednesday.
Stock futures fell Monday evening, extending a global selloff that began in Asian and European trading. The slide was led by semiconductor stocks, which continued their recent decline on concerns over AI spending, stretched valuations, rising oil prices, and the upcoming US inflation report.
Traders cited growing unease that the AI spending boom is not translating into proportional revenue growth for chipmakers. The Philadelphia Semiconductor Index dropped more than 2% in after-hours trading, with Nvidia, AMD, and other major names falling. The move followed sharp declines in Tokyo and Seoul, where chip-heavy indices lost ground.
Oil prices added to the pressure. Brent crude rose above $92 a barrel after attacks on Russian refineries threatened supply, feeding inflation worries that could keep the Federal Reserve on hold. The combination of rate uncertainty and geopolitical risk pushed investors toward defensive positions.
All eyes are on Wednesday's consumer price index, due at 8:30 a.m. ET. The data will test whether the market can shake off the semiconductor rout or if the selloff has further to run.
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