AI-Driven Tech Selloff Presses Nasdaq and Asian Markets

AI-driven investment has pushed tech firms to spend billions on data-center infrastructure and high-performance chips. Semiconductor capacity lagged demand, sending memory prices to multi-year highs and forcing Apple and Microsoft to raise product prices, while investors question valuations based on future AI revenue.

CNN

Nasdaq futures fell 1.2% and the Nasdaq-100 closed down about 1.1%; the S&P 500 slipped 0.1% while the Dow Jones rose 0.14%. South Korea’s Kospi dropped 5.8% and later 8.2%, triggering a 20-minute circuit breaker. Apple’s stock fell over 6% after price hikes for MacBooks and iPads, erasing roughly $250 billion in value. Micron surged 16% on strong demand. Treasury yields stayed near 4.1% (2-yr) and 4.4% (10-yr).

S&P 500, Nasdaq End Week Lower As Investors Rotate Out Of Tech, AI Plays — ON, AAPL, SLS, INFQ, NKE in Focus

Apple announced a 6% price increase for MacBooks and iPads; Microsoft raised Xbox prices by up to $150. Micron beat earnings expectations, lifting semiconductor ETFs. OpenAI, per the New York Times, is weighing postponing its IPO to next year, adding caution to AI-linked stocks. The Federal Reserve’s July outlook remains unchanged, with markets pricing a 72% chance of holding rates steady.

Reuters

Higher component costs could become a broader ecosystem headwind for big tech, per Charu Chanana of Saxo. Liz Ann Sonders of Schwab said a strong earnings report is unlikely to reverse the AI unwind. Mark Hackett of Nationwide described sentiment as pessimistic, and Collin Martin of Schwab said policymakers now have time to assess inflation before the next rate decision.

Benzinga

Different outlets reported varying Nasdaq losses on Friday: CNN cited a 1.2% drop, TradingView noted a 1.1% fall for the Nasdaq-100, and Benzinga’s futures data showed a 0.46% decline. The spread reflects differences between index-level futures, the broader Nasdaq composite, and timing of market closes.

S&P 500, Nasdaq End Week Lower As Investors Rotate Out Of Tech, AI Plays — ON, AAPL, SLS, INFQ, NKE in Focus

• “Apple's price increases were a reflection of how the big tech may at some point start to feel the pain of these higher component costs, and that can become a broader ecosystem headwind,” — Charu Chanana, Chief Investment Strategist, Saxo

Reuters

• “Investor sentiment has turned increasingly pessimistic amid the technology selloff and sharp rotation, but the broader market is telling a different story,” — Mark Hackett, Nationwide

S&P 500, Nasdaq End Week Lower As Investors Rotate Out Of Tech, AI Plays — ON, AAPL, SLS, INFQ, NKE in Focus

• “SCFR’s Chief Investment Strategist Liz Ann Sonders said one strong earnings report is unlikely to negate the factors behind the recent unwind in AI stocks.” — Liz Ann Sonders, Schwab

Benzinga

• “While the latest PCE report matched expectations, Martin said policymakers now have time to assess how inflation evolves over the coming months before making their next rate decision.” — Collin Martin, Schwab

Benzinga

Investors will watch the Fed’s July meeting, May’s PCE index and June’s University of Michigan consumer sentiment for monetary-policy clues. OpenAI’s IPO timing remains uncertain, with a possible 2027 postponement adding volatility to AI stocks. Continued chip-price pressure and higher borrowing costs could extend the tech correction.

Benzinga