S&P 500 futures registered a decline early Tuesday, following a broad market sell-off on Monday that was particularly sharp in the technology sector.
Tech Sector Drag
Futures tied to the S&P 500 lost 0.53%, while Nasdaq 100 futures fell 0.99%. Dow Jones Industrial Average futures indicated a drop of 55 points, or 0.11%.
During the previous regular trading session, the S&P 500 closed down 0.37%, pulled lower by a decline in technology shares. The tech-heavy Nasdaq Composite saw a more significant drop of 1.32%. Conversely, the Dow Jones Industrial Average managed a gain of 148.01 points, or 0.29%, buoyed by an increase in Caterpillar’s stock.
Asian Markets Turn Lower
Markets across the Asia-Pacific region reversed earlier gains, turning lower on Tuesday. South Korea’s Kospi led the regional downturn, falling over 6%, with its small-cap Kosdaq index down 6.27%. Japan’s Nikkei 225 declined 1.5%, ending an eight-session streak of gains, while the Topix fell 0.79%.
Other Asian markets also experienced declines. India’s Nifty 50 was down 0.22%, Australia’s S&P/ASX 200 lost 0.11%, mainland China’s CSI 300 fell 1%, and Hong Kong’s Hang Seng Index was down 0.16%.
“Magnificent Seven” Under Pressure
Investors appeared to rotate out of high-profile technology stocks, referred to as the “Magnificent Seven,” on Monday. Amazon shares dropped nearly 5%, and Meta Platforms fell 2%. Alphabet’s stock slipped 5%, marking its worst daily performance in over a year, amid concerns over departures of artificial intelligence researchers. Elon Musk’s SpaceX also saw a significant decline, falling 16% and extending its negative streak to three sessions.
Liz Ann Sonders, chief investment strategist at Charles Schwab, commented on the market dynamics, noting that while AI and tech remain areas of focus for retail traders, their activity has shifted from individual stocks towards broader exchange-traded funds (ETFs). She emphasized that corporate earnings continue to be a primary support for stock valuations.
Oil Prices and Economic Data
In other market news, oil prices slipped on Monday. Reports indicated progress in talks between the U.S. and Iran toward a deal, potentially within 60 days, involving the establishment of a committee and the end of military operations in Lebanon. The U.S. Treasury Department’s subsequent authorization for the sale of Iranian oil through August contributed to oil prices trading near their session lows.
Looking ahead, investors are anticipating earnings reports from Carnival and Korn Ferry before Tuesday’s opening bell. Additionally, preliminary manufacturing and services data from the S&P Global Purchasing Managers’ Index (PMI) for June will be released.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
