AI Trade Doubts Drag Futures Lower; Nvidia, AMD Fall
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Nvidia fell 4.13% and AMD dropped 5.76% on Tuesday, leading a semiconductor sell-off driven by growing Wall Street concerns about stretched AI valuations amid massive sector investment.
- Micron shares dipped 13% on Tuesday despite being up more than 250% year-to-date, with its closely watched earnings due after Wednesday's bell seen as a key test of AI sector faith.
- Cerebras saw its shares drop after reporting its first earnings since going public, with investors bristled by results suggesting the company could face challenges competing with chip giant Nvidia.
- FedEx dipped after its earnings report cited "shifting trade policy" as a major headwind, reinforcing concerns about the broader economic toll of trade uncertainty.
- Dow and S&P 500 futures fell 0.1% in pre-market trading while Nasdaq 100 futures hugged the flatline, following a session that saw the Nasdaq drop 2.21%.
- Iran and Oman have begun discussing a system to charge fees for transit through the Strait of Hormuz, complicating President Trump's pledge that the waterway would remain toll-free.
Why it matters: The AI-led sell-off hit chip stocks hard — Nvidia off 4.13% and AMD down 5.76% in a single session — and with Micron's earnings due after Wednesday's bell, the results will signal whether the cooling is a healthy correction or the start of a deeper unwind of the trillion-dollar AI trade. FedEx's trade-policy warning adds a macro overlay, showing tariffs are now biting corporate earnings outside tech.
