New York, June 23, 2026, 06:03 EDT
- S&P 500 futures were down 1.33%, Nasdaq 100 slid 2.42%, and Dow futures lost 0.60% as of 5:22 a.m. EDT.
- U.S. cash equities are set for a normal Tuesday session. Nasdaq premarket is from 4:00 a.m. to 9:30 a.m. ET, with the regular cash open at 9:30 a.m.
- NYSE is closed June 19 for Juneteenth and will observe Independence Day with a full-market holiday on July 3.
Tech names weighed on Wall Street futures early Tuesday as contracts pointed lower before the open. Investors pulled back from artificial intelligence trades while worries about a hawkish Fed path added pressure. Futures trade ahead of the main session and offer a view on where indexes may open.
The shift is important since this year’s stock gains have mostly come from pricey AI stocks. With rates up, future profits get discounted harder, and borrowing costs rise for companies paying for data centers, chips and infrastructure with debt.
The Nasdaq 100 took most of the heat. Reuters said Nasdaq futures fell more than 2%, with Nvidia and Alphabet among the big tech names losing ground. Chip stocks Intel, Marvell, and AMD were weaker in premarket action. Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said SpaceX is “jumping on the bond train,” and warned Big Tech could be “spending too much on AI infrastructure.” Reuters
SpaceX is already influencing market sentiment ahead of any index inclusion. The company made its bond market debut after its IPO, planning to use the money for general corporate purposes and to pay down bridge loans. “Avoiding further shareholder dilution” drove the decision to issue debt and not equity, said Adam Sarhan, CEO at 50 Park Investments. Reuters
Rate worries hit selling too. BofA Global Research is calling for three 25-basis-point hikes this year. Deutsche Bank expects just two. Each basis point is one-hundredth of a percent. BofA analysts said in a note that the Fed’s reaction function “looked much more hawkish” than what they expected after the June projections and Chair Kevin Warsh’s comments. Reuters
Europe felt the drop too. The STOXX 600 lost 1.3% and tech names fell harder, down 3.4% as a group. Infineon, STMicroelectronics, ASML and Aixtron each dropped over 5%. “Potential earnings sustainability” might come into play for investors, UBS global head of investment communications Kiran Ganesh said, if companies keep raising debt without enough payoff. Reuters
Fresh data is on the docket. S&P Global’s flash U.S. PMI is due at 13:45 UTC Tuesday; the 50 level marks growth from contraction. If the number comes in hot, it could toughen the case for the Fed to keep rates steady despite inflation concerns.
Inflation is still the bigger risk later this week. The Bureau of Economic Analysis reported core PCE inflation, which strips out food and energy and is the Fed’s main inflation metric, increased 3.3% year over year in April. Reuters said economists expect May’s PCE inflation at 0.4% for the month and around 4.0% from a year ago, following the most recent CPI data.
Gold lost over 2% as the dollar stayed close to a one-year high, with crude also weaker as traders looked at U.S.-Iran talks and a sanctions waiver. “No such favours from the U.S. dollar,” said Tim Waterer, chief market analyst at KCM Trade. Other markets also showed caution. Reuters
Bears could get hit if weaker PMI or inflation numbers knock down rate-hike expectations and growth stocks bounce, more so if falling oil cools inflation. But if rates keep climbing and the market turns on debt-heavy AI projects, losses might move beyond crowded tech names to smaller and cyclical stocks.
Traders set to watch the open to see if Monday’s tech drop was just a blip in a strong market or the first sign of a pullback. The first hour could be key.
