Nasdaq Futures Plunge 2% as Chip Stock Selloff Triggers Global Market Turbulence

Nasdaq Futures Plunge 2% as Chip Stock Selloff Triggers Global Market Turbulence​

Nasdaq 100 futures tumbled as much as 2 percent on Friday as a synchronized global selloff in chip stocks accelerated. Investors are actively cutting exposure to the high-performing companies that spearheaded this year's rally, citing growing concerns over stretched valuations.

S&P 500 futures were down 0.84 percent, while Dow Jones Industrial Average futures declined 0.56 percent. These figures point toward a significantly weak opening for Wall Street as the tech sector faces intense pressure.

The bearish sentiment was clearly mirrored across Asian markets today. Japan's Nikkei 225, China's SSE Composite, and Hong Kong's Hang Seng index all ended their sessions significantly lower.

European markets were also navigating red territory during mid-session deals. This global cooling reflects a broad risk-off sentiment among institutional players.

Geopolitical Friction and Crude Oil Surges Impact Market Sentiment​

Investor nerves remain frayed due to fresh attacks and counterattacks in the Middle East. These geopolitical tensions are weighing heavily on global equity markets and influencing commodity prices.

Brent crude is currently on track for its biggest weekly gain since April. The oil benchmark is trading above USD 85 a barrel as markets react to heightened regional instability.

Artificial Intelligence Selloff Hits Magnificent Seven and Netflix​

In early US trade, investors continued to trim holdings in companies heavily tied to the artificial intelligence theme. Nvidia Corp fell 3 percent, leading the losses among the so-called Magnificent Seven stocks.

The selling pressure extended beyond hardware, hitting chip-equipment makers, neocloud providers, optical firms, and energy stocks. This rotation suggests a tactical retreat from overextended AI names.

Netflix Inc experienced a particularly sharp decline of 11 percent. The stock slumped following the company's issuance of a disappointing forecast, further dampening investor enthusiasm for the entertainment giant.

Indian Equities Defy Global Weakness to Surge Higher​

In a notable divergence, Indian equity benchmark indices bucked the weak global trend to end sharply higher on Friday. The domestic market saw strong buying interest in Reliance Industries, banking, and information technology stocks.

Traders noted that a strengthening rupee against the US dollar also helped lift local sentiment. This provided a cushion for investors even as broader global cues remained largely negative.

The 30-share BSE Sensex jumped 964.58 points, or 1.25 percent, to settle at 78,151.45. During the trading session, the index rallied by as much as 1,095.68 points, or 1.41 percent, reaching a peak of 78,282.55.

The 50-share NSE Nifty advanced 261.55 points, or 1.09 percent, to close at 24,334.30. The domestic rally highlights a period of significant resilience in the Indian markets despite the prevailing international volatility.