Nasdaq-100 futures fell sharply on Friday as investors expressed growing concerns over the sustainability of the ongoing artificial intelligence capital expenditure boom.
Nasdaq-100 futures dropped 1.6% on Friday as global tech stocks faced downward pressure from mounting jitters regarding artificial intelligence spending. The sell-off was led by the semiconductor sector, with the iShares Semiconductor ETF falling nearly 3% and the VanEck Semiconductor ETF dropping more than 2%. Major chipmakers including Applied Materials, LAM Research, and Nvidia saw significant losses, while Intel and KLA Corporation fell by more than 3% each. The tech volatility was mirrored in Asian and European markets, where chip stocks extended their declines. Investors are increasingly questioning whether the current AI investment surge can be sustained long-term. Meanwhile, Netflix shares plummeted more than 11% following a second-quarter earnings report that met expectations but offered a disappointing forecast. Geopolitical tensions also influenced market sentiment. Bond yields fell as traders monitored escalating U.S.-Iran hostilities. Iran warned it would "crush" key targets if President Trump targets the country's infrastructure, following a statement from the administration that U.S. forces would strike Iranian targets next week if a diplomatic breakthrough is not achieved.