US stock futures extend drop, Nasdaq 100 contracts fall 0.8%

U.S. stock futures extended their decline ahead of the market open, with Nasdaq 100 contracts falling 0.8% as global chip stocks continued to face pressure from sustainability of AI-driven investment cycles. The sell-off in semiconductor equities has spread across global markets, with the iShares Semiconductor ETF (SMH) down nearly 7% for the week and on track for a 6.9% weekly loss. Major chipmakers such as Intel, Micron, and Nvidia all saw declines in the 3%–4% range in premarket trading.

The broader market downturn was reflected in U.S. futures, with Nasdaq 100 futures down 1.9%, S&P 500 futures retreating 0.9%, and Dow Jones Industrial Average futures falling roughly 0.6%. The decline mirrored losses in Asian and European markets, where key indices such as Japan’s Nikkei 225 and Taiwan’s benchmark fell by 4% and 6.5%, respectively.

Analysts noted that investors are increasingly questioning the long-term viability of the AI capital expenditure boom, with a Bank for International Settlements report cited as a cautionary signal about past investment cycles driven by transformative technologies. Meanwhile, geopolitical tensions in the Middle East and mixed corporate earnings from firms like Netflix and Alcoa added to market volatility.