STLD - Nasdaq S&P 500 Futures Plunge After Trump's Comments And ASML's Weak Forecast Deepens Tech Sell-Off: AI Narrative May Be Priced In Says Analyst | Benzinga

Sentiment will likely reverse course, with the index futures trading notably lower early Wednesday. The recent run-up ideally should render the mood cautious, and the caution may intensify as the first AI-levered chip company from across the Atlantic reported second-quarter results that were not viewed positively by the Street. Republican presidential nominee Donald Trump added to the worries concerning the tech space after he said in a Bloomberg interview that Taiwan should foot its own defense bill as it strives to keep China at bay. Taiwan houses most chip suppliers to the tech industry. Bond yields edged up ahead of the housing starts and industrial production report.

Cues From Last Session:

U.S. stocks kept their rally streak alive as they advanced on Tuesday, with material, industrial and consumer discretionary stocks fueling the upside, offsetting the weakness seen among IT and communication services stocks. A healthy retail sales report did not dampen expectations for a rate cut, with bond yields finishing down 1.70%.

The major averages opened uniformly higher, and the Dow Jones Industrial Average and the S&P 500 Index advanced steadily and kept themselves to the positive terrain.

In the process, the Dow and the S&P 500 Index notched up fresh intraday and closing highs. Commenting on the Dow’s move, Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, said, “The Dow has spent most of the past two years lagging the S&P 500 index, but it has new wind in its sales this summer on the hopes that the market rally will broaden from a narrow set of technology companies into a broader array of companies throughout the economy.”

The Nasdaq Composite, however, squandered its early gain and traded mostly below the unchanged ...

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