IXIC: Nasdaq Futures Shed 1% as Chip Selloff in Asia Triggers Trading Halt

Technology shares face renewed pressure Tuesday as Asian chipmakers tumble and investors prepare for bank earnings.

📉 Chips drag on Wall Street; selling is selective

• Nasdaq futures were down roughly 1% Tuesday, while European futures slipped 0.4%, extending the cautious mood beyond Monday’s US session. The Nasdaq Composite fell 0.4% to 27,245.90 Monday, losing 120 points as semiconductor stocks weakened.
• The S&P 500 edged down 0.1% to 7,807.24, while the Dow added 196 points to 51,850.55. That split shows investors rotating between sectors rather than selling equities uniformly.
• Micron dropped 3.9% and Lumentum almost 11%, putting pressure on the AI infrastructure trade. Reports of technological advances at Chinese memory producer CXMT intensified competition concerns.

💪 Few gainers here and there

• Meta gained 3.4%, ending four consecutive losing sessions after introducing its Muse Wonder AI models. Salesforce climbed more than 4% following a Bank of America upgrade.
• Both moves suggest investors still reward AI businesses when product launches or clearer strategies strengthen the earnings case.
• Outside technology, Chipotle fell roughly 4% after Starbucks denied plans to buy the restaurant chain. The denial removes a takeover catalyst and returns attention to each company’s operating performance. Starbucks remains focused on its turnaround under Brian Niccol, who previously led Chipotle.

🌏 Asia slides as currencies and commodities reflect the strain

• South Korea’s Kospi sank more than 6%, triggering a five-minute trading suspension. Japan’s Nikkei lost nearly 3%% and Taiwan’s benchmark fell 2%. Tuesday’s Asian-session snapshots apparently dragged futures trading elsewhere.
• The dollar index held near an 18-month high above 102.50 in early Asian trading. EUR/USD traded around $1.1159, GBP/USD near $1.3209 and USD/JPY around ¥158.50.
• Brent crude eased toward $106 a barrel, retaining most of Monday’s advance. Traders weighed Gulf supply risks against the prospects of additional Russian diesel reaching global markets.
• Gold slipped toward $4,164 an ounce and silver hovered around $60, with dollar strength weighing on precious metals. Bitcoin recovered toward $82,900 after losing about 2.3% Monday.
• The orange coin’s rebound offers some resistance to the broader weakness, although one recovery session provides limited evidence of a durable change in sentiment.

🗓️ Earnings and inflation become the next tests

• JPMorgan, Goldman Sachs, Citigroup and Wells Fargo report Tuesday, opening the big-bank earnings season. Beyond headline profits, traders should watch loan demand, deposit costs, trading revenue and provisions for bad loans.
• Wednesday’s US CPI report arrives at 8:30 a.m. ET, with forecasts pointing to annual headline inflation around 3.7% and core inflation near 2.5%.
• Markets assign roughly a 20% probability to an October Fed hike and almost 90% to a December increase, making surprises consequential for stocks, currencies and metals.
• ASML reports Wednesday and TSMC Thursday, providing important checks on semiconductor orders and AI investment. Analysts expect TSMC’s quarterly profit to rise around 65%.
• Thursday brings US producer prices and retail sales, testing inflation pressures and consumer resilience. Meanwhile, the 10-year Treasury yield eased toward 5.20% Tuesday.