US stock futures plummet, with large tech stocks leading the decline once again

Odaily Planet Daily News: US stock futures fell on Tuesday as a sell-off in large tech stocks spilled over into Asian AI-related stocks, with investors also awaiting further progress in US-Iran talks.

Asia's technology sub-sector took a heavy hit on Tuesday, ending an eight-day winning streak. Stock markets in Japan and South Korea saw a collective pullback, with South Korean stocks plunging nearly 10%. Currently, mega-cap tech stocks are generally exhibiting synchronized movements. Alphabet has shown weakness, and SpaceX has also declined as the IPO frenzy fades. Market sentiment is gradually spreading to other leading tech stocks, with a renewed cautious stance towards the technology sector.

This shift marks a stark contrast to last year, when almost all AI-related companies were seen as "gold mines," and any business mentioning AI was eagerly embraced by the market. However, the market is now entering a validation period where "results must be delivered." Investors are demanding that massive investments in AI infrastructure generate real returns.

This is particularly pronounced in companies like SpaceX, which has negative cash flow yet still raised $75 billion from its IPO. This transformation keeps market sentiment tense, with the market focus this week turning to Micron Technology's earnings conference call. "Many investors holding AI stocks have realized substantial gains. Any volatility could prompt them to reduce positions and lock in profits,"

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