U.S. stock futures are plunging, with large-cap tech stocks leading the decline once again

According to Odaily, U.S. stock futures fell on Tuesday as a sell-off in large-cap technology stocks spilled over into Asian AI-related equities, while investors awaited further developments in U.S.-Iran negotiations.

On Tuesday, the Asian tech sub-sector suffered a heavy blow, ending an eight-day winning streak. Stocks in Japan and South Korea saw a collective retreat, with South Korean shares plummeting nearly 10%. Currently, mega-cap tech stocks are exhibiting synchronized movements, with Alphabet showing weakness. SpaceX also declined as the IPO frenzy faded. Market sentiment is gradually spreading to other leading tech stocks, prompting a renewed cautious stance towards the technology sector.

This shift marks a stark contrast from last year, when nearly all AI-related companies were viewed as "gold mines," and any business mentioning AI was eagerly embraced by the market. However, the market is now entering a verification phase of "delivering results," where investors demand that massive investments in AI infrastructure yield tangible returns.

This trend is particularly pronounced for companies like SpaceX, which have negative cash flow yet still raised $75 billion from their IPO. This shift is keeping market sentiment on edge, and this week, the market's focus will turn to Micron Technology's earnings conference call. "Many investors hold AI-related stocks and have reaped substantial gains. Any volatility could prompt them to reduce positions to lock in profits,"

said Jian Shi Cortesi, a fund manager at Gam Investment Management. "Currently, tech stocks are also particularly sensitive to interest rate outlooks and potential rate hikes by the Federal Reserve." (Jin Shi)