US stock futures plunge! Nasdaq Futures fall 2.2% after Chinese AI "moonshot" triggers sell-off in chip stocks.

Chinese AI startup Moonshot launched its Kimi K3 model, triggering a global sell-off in chip stocks and pushing Nasdaq Futures down 2.2% amid concerns about intensifying AI competition.

On July 17, 2569 at 15.32:XNUMX p.m., Bloomberg News reported that U.S. stock market futures fell sharply, led by technology stocks, amid continued strong selling in semiconductor stocks. Concerns have been raised that advances in AI from China could increase competition in the industry and put pressure on AI investment in the future.

At 4:31 AM New York time, Nasdaq 100 futures fell 2.2%, while S&P 500 futures declined 1.1%. Nvidia led the decline in the Magnificent 7 stocks in pre-market trading, and the Philadelphia Semiconductor Index (SOX) was nearing a bear market after continuing its decline from the previous day.

This selling pressure occurred after Moonshot, a Chinese AI startup, unveiled its Kimi K3 model, claiming it could compete with leading models from OpenAI and Anthropic. This brought investors back to the "DeepSeek Moment" of last year, which sent shockwaves through tech stocks worldwide.

Although the S&P 500 closed only 0.5% down last night, the overall market remained strong, with 369 stocks rising compared to 132 falling, reflecting that selling pressure remains concentrated mainly in the chip sector.

Venu Krishna, a strategist from Barclays. The report indicates that the hype surrounding AI investment is slowing down, even though semiconductor stocks continue to outperform other sectors, while software stocks remain weak. This reflects a gradual shift in investment flow and is not yet a major market reversal.

Furthermore, investors are beginning to worry that the massive rise in AI stock valuations over the past few years may be overvalued, as well as the sustainability of huge investments in AI infrastructure. At the same time, the market faces pressure from volatility in South Korea stemming from speculative borrowing and concerns that China may significantly increase its memory chip production, leading to a weakening of global chip prices.

On an individual stock basis, Netflix fell 9.7% in pre-market trading after the company projected that revenue growth would slow for the second consecutive quarter, despite its recent earnings exceeding analyst expectations.

refer : bloomberg.com

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