Money is leaving technology stocks at pace. Thursday morning saw the Dow Jones futures up 0.3% while Nasdaq 100 futures dropped the same amount, widening a split that started Wednesday when the blue-chip index closed at record highs for a third straight day. The real story sits underneath: investors are dumping semiconductor and AI-adjacent names after months of chasing them higher.
AMD cratered 7% following earnings that disappointed the market. Sandisk and Western Digital, both caught in the AI supply-chain rotation, fell sharply as well. The culprit is straightforward. Traders are asking whether all this money companies are pouring into AI infrastructure will ever return a profit, and whether current valuations make sense when the answer remains unclear. Alphabet triggered Wednesday's broader tech selloff by reshuffling its AI division, a move that spooked momentum traders who saw it as a sign of internal chaos.
Nvidia bucks the trend, SpaceX lockup looms
Nvidia rose over 3% after SpaceX announced exclusive use of its chips for operations. One Word From Elon Tanked SpaceX Stock While Nvidia Soared captures how tightly linked these stocks have become. The irony cuts deep, though. SpaceX stock itself sits near all-time lows with a lockup period expiring Thursday, meaning insiders can finally sell. If they do, the stock could slide further, erasing some of Nvidia's gains on the news.
Oil steadies on Iran-Oman deal, gold climbs
Geopolitical relief came from an unexpected direction. Iran and Oman agreed to a temporary shipping route through the Strait of Hormuz, which eased supply concerns enough to hold oil near $80 per barrel. Gold climbed to multiweek highs as investors hedged against further uncertainty. Deutsche Bank's Jim Reid flagged that strong earnings and the Hormuz agreement could act as catalysts, though he noted the equity rally had already started losing steam by Wednesday's close.
The bigger picture: large-cap tech is finally facing the reckoning that smaller AI names have been absorbing for weeks. S&P 500 futures edged up just 0.2%, caught between a Dow bounce and a Nasdaq brake. Labor data will follow, and traders are watching closely for any sign that the economy can support both record valuations and slowing earnings growth.
This material is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
