Tech stocks were getting hit again ahead of the open Tuesday as fears over artificial-intelligence spending snapped back into focus.
It's partly down to the disastrous trading debut of South Korean data center infrastructure company Elice. The stock plunged 32% after its IPO despite reports retail demand was 400 times oversubscribed.
Korean memory-chip giant SK Hynix's American depositary receipts fell 4.6% in premarket trading. But the pressure extended to the broader U.S. tech sector as last week's brutal selloff threatened to reignite.
CoreWeave, the poster-child of AI debt fears, was down more than 4%. The shares have fallen 30% in October and more than 50% over the past year, through Monday's close. IREN, another so-called neocloud provider, was down 3%.
Chip stocks finally snapped their nine-day losing streak -- the longest in 20 years -- on Monday but the sector is back in the red already. Intel, Micron, Marvell and Advanced Micro Devices were all down between 1.5% and 2.5%.
Earnings are also set to play a big part in today's trading. General Motors and GE Aerospace reported before the open, while United Airlines, Netflix and SpaceX are after the close.
3M was rising 2.4% after its earnings as the company expanded its date-center products deal with Amazon. Steel Dynamics fell more than 6% after earnings missed estimates late Monday.
SpaceX was falling more than 1% ahead of the rocket and AI company's eagerly-anticipated earnings. It could be a volatile ride as options markets imply a move of 7% in either direction.
The broader market is holding up despite the tech weakness. Dow Jones Industrial Average futures are up slightly and S&P 500 futures are down less than 0.1%.
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