US stock futures opened mixed on Tuesday.
Wall Street closed higher in the previous session, but AI-related names once again faced selling pressure.
As of the latest update, S&P 500 futures were down 0.4%, Nasdaq 100 futures fell 0.8%, and Dow Jones Industrial Average futures dropped 66 points, or 0.1%.
Micron Technology and SanDisk each fell about 3%, while Seagate Technology, Intel, and AMD all declined more than 2%.
The VanEck Semiconductor ETF (SMH) pulled back more than 1%, and CoreWeave, Inc. (CRWV) plunged over 4%.
South Korean AI company Elice plummeted more than 30% on its debut overnight, denting sentiment toward tech stocks.
With concerns over debt and demand mounting, investors have recently been worried about whether the AI rally can be sustained.
During Monday's regular trading session, the S&P 500 rose 0.4% and the Nasdaq Composite gained more than 1%.
Nvidia closed up 1.4%, Tesla surged 3.8%, and Alphabet rose about 1%.
This was a rebound following last week's sharp selloff.
Previously, market fears that companies were aggressively taking on debt to fund AI computing infrastructure caused selling pressure to spread to the broader market.
Jose Torres, senior economist at Interactive Brokers, wrote: "On Friday, ahead of the intensifying selloff, the cost of volatility hedging spiked intraday; now that market confidence in the tech outlook has recovered, counterparties are unwinding their hedges, and Wall Street is breathing a sigh of relief."
CoreWeave, Inc. (CRWV) tumbled more than 25% last week. After Goldman Sachs upgraded the stock to Buy, the shares briefly tried to recover some lost ground, but early gains quickly faded and the stock ended slightly lower.
Against the backdrop of overnight gains on Wall Street, Asia-Pacific markets traded lower on Tuesday.
South Korea's Kospi fell 3.73%; Japan's Nikkei 225 dropped 1.3%; and Australia's S&P/ASX 200 declined 0.33% to 8,816.9 points.
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