Nasdaq Futures Rise as Tech Selloff Deepens, June 08

Nasdaq 100 futures rose 0.73% on June 08 after a historic selloff in technology stocks. The broader market remains under pressure from a stronger-than-expected May jobs report that raised odds of Federal Reserve rate hikes, combined with escalating Iran-Israel tensions. Investors fled chip stocks and AI-related names, erasing $1 trillion in market value and triggering sharp declines across Asia-Pacific markets.

Tech Stocks Face Historic Rout

The Philadelphia Semiconductor Index crashed 10.3% on Friday, its worst day since March 2020. Marvell Technology fell 16% to $263.47 after trading at a record $316.43 the prior day. Broadcom sank 7.49% to $387.52, while Nvidia dropped 5.93% to $205.70. The selloff erased roughly $1 trillion in combined chip stock value in a single session. Analysts at major brokerages reset price targets after the rout, citing valuation concerns and slowing guidance from key players like Broadcom.

Jobs Report Triggers Rate Hike Fears

Friday’s stronger-than-expected May employment report pushed the 10-year Treasury yield to 4.54%, a two-week high, while the 30-year crossed 5%. Futures markets now price better-than-60% odds of a Fed rate hike by year-end. The S&P 500 fell 2.64% to 7,383.74, and the Nasdaq Composite dropped 4.18% to 25,709.43. Investors worry that higher borrowing costs will pressure companies spending heavily on AI infrastructure, with hyperscalers on pace to spend close to $1 trillion annually on data centers and chips.

Asia-Pacific Markets Plunge on Geopolitical Shock

South Korea’s Kospi index crashed 9% at one point on June 08, forcing trading to be briefly suspended. Japan’s Nikkei 225 fell 3.85% to 64,024.6, while Hong Kong’s Hang Seng Index slid 1.37%. Mainland China’s CSI 300 dropped more than 2% to 4,713.64. The selloff accelerated after Iran reportedly fired missiles at Israel over the weekend, stoking renewed conflict fears. SK Hynix fell 4.1% and Samsung Electronics dropped 7.8% as memory chipmakers faced the sharpest pressure. Analysts warn that constrained supply and hot demand are fueling persistent inflation, limiting the Fed’s room to cut rates.

Futures Show Mixed Signals

Dow futures fell 155 points, or 0.3%, while S&P 500 futures gained 0.24% and Nasdaq 100 futures rose 0.73% on June 08. The mixed signals reflect investor uncertainty about whether the selloff represents a genuine cooling in AI demand or a rotation out of crowded momentum trades. Dip buyers stepped in before Friday’s close, and data-center capital spending from major cloud providers has not been cut. However, concerns persist that valuations ran ahead of fundamentals after Broadcom chose to reiterate rather than raise guidance.

Final Thoughts

Nasdaq futures gained ground on June 08, but the underlying picture remains fragile. With Treasury yields at two-week highs and chip stocks down 10%, investors face a choice between buying the dip or waiting for clarity on rate hikes and AI spending.

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