Stock market today: S&P 500, Nasdaq futures slide as chip sell-off deepens

US tech stocks sank earlier the doorbell connected Tuesday arsenic a sell-off successful Korean representation makers underscored concerns astir AI circular financing deals, overshadowing a driblet successful lipid prices and net optimism.

Contracts connected the Nasdaq-100 (NQ=F) fell 0.9%, signaling further losses for the tech-heavy index, portion those connected the S&P 500 (ES=F) dropped 0.2%. But Dow Jones Industrial Average futures (YM=F) edged into the green, up 0.1%.

South Korea's Kospi (^KS11) banal benchmark tumbled implicit 10% connected Tuesday arsenic investors dumped shares successful apical representation chipmakers SK Hynix (SKHY, 000660.KS) and Samsung Electronics (005930.KS), which sank much than 14% and 13%, respectively.

Sentiment connected the AI commercialized has soured amid reports that Nvidia (NVDA) is exploring a $250 cardinal backing backstop for OpenAI (OPAI.PVT), further intertwining the 2 companies and heightening worries astir circular financing. Tech traders besides grew tense that Chinese contention is narrowing the AI spread with US companies, undermining prospects for a payoff.

Oil prices, meanwhile, continued to retreat aft the US and Iran halted progressive warring and President Trump said the 2 sides were successful diplomatic talks. "There's a bully accidental that thing could happen, and if it does, good," Trump said aboard Air Force One connected Monday. "If it doesn't, we spell backmost to doing what we were doing."

The Federal Reserve kicks disconnected its two-day argumentation gathering connected Tuesday, and it's 1 of the hardest argumentation decisions for the marketplace to telephone successful years. Traders' bets skew toward the Fed holding rates dependable astatine the extremity of its gathering connected Wednesday, but determination isn't conviction, and a complaint hike could beryllium connected the table.

The deluge of net continues arsenic well. Investors volition beryllium watching SK Hynix's results owed astir 8 p.m. ET for penetration into the representation commercialized arsenic AI worries swirl. In addition, galore household names, including Visa (V), Coca-Cola (KO), Boeing (BA), Ford (F), and PayPal (PYPL), besides report. On the economical front, investors volition beryllium monitoring an update connected user assurance astatine 10 a.m. ET.