Global Tech Sell-Off Deepens as Nasdaq Futures Slide on Rising AI Infrastructure Costs

Stock futures fell sharply on Friday as investors continued to retreat from technology stocks, extending a global market sell-off fueled by concerns over the soaring costs of artificial intelligence infrastructure. Nasdaq-100 futures dropped 1.2%, while S&P 500 futures slipped 0.5%. Dow futures were comparatively resilient, falling just 67 points, highlighting a growing shift away from high-growth tech stocks and toward more defensive sectors.

The latest wave of selling followed another difficult session on Wall Street, where the Nasdaq Composite recorded its fourth consecutive decline, marking its longest losing streak since February. Technology shares remained under pressure despite strong earnings from memory-chip maker Micron. Investors instead focused on rising operating costs and expensive AI investments, concerns that have begun to weigh heavily on some of the market’s biggest winners over the past year.

Chipmakers and major technology firms led the downturn. On Semiconductor plunged 13% after announcing a $7 billion acquisition of Synaptics, while Apple fell 6% after unveiling price increases on its iPads and MacBooks. Microsoft also lost more than 3% after raising Xbox console prices due to mounting component costs. Other tech giants, including Alphabet and Meta Platforms, closed lower as investors reassessed the sector’s growth outlook amid increasing expenses.

The sell-off spread rapidly across global markets, with Asian technology stocks suffering some of the steepest losses. Japanese investment giant SoftBank tumbled more than 12%, while South Korea’s Kospi index dropped nearly 6% as investors dumped technology shares. Japan’s Nikkei 225 also posted significant losses, while markets in Hong Kong and mainland China ended firmly in negative territory. European markets followed the trend, opening lower as technology-related concerns continued to ripple across international exchanges.

Market analysts say the current environment reflects growing uncertainty over both technology valuations and monetary policy expectations. Investors are increasingly questioning whether the massive spending required to support AI development can justify current stock prices. At the same time, changing expectations around future Federal Reserve decisions have added another layer of volatility. With the Nasdaq now on track for a weekly decline of more than 4%, traders are closely watching upcoming economic data, including U.S. wholesale inventories and consumer sentiment figures, for clues about the market’s next direction.

sorce: cnbc