Nasdaq Futures Drop as Chip Stocks Extend Losses; Moonshot AI Model Shocks Investors

Nasdaq Futures Drop as Chip Stocks Extend Losses; Moonshot AI Model Shocks Investors

September Nasdaq 100 E-Mini futures (NQU26) fell 1.61% as the global selloff in chip stocks intensified. Stocks tied to the AI buildout continued to decline amid concerns that valuations had become overstretched after a historic rally in the first half of the year. Taiwan's Taiex and Japan's Nikkei entered technical correction territory, reflecting the broad market impact.

■Chinese AI startup Moonshot announced its Kimi K3 model could rival offerings from OpenAI and Anthropic PBC, drawing comparisons to last year's 'DeepSeek moment'.

■Netflix (NFLX) shares dropped over 9% in pre-market trading after reporting weaker-than-expected Q2 revenue and forecasting continued slowing sales growth.

■Escalating Middle East tensions saw U.S. forces conduct sixth consecutive night strikes on Iran's military infrastructure, prompting Iran to retaliate against U.S. bases in Kuwait, Jordan, and Bahrain. WTI crude rose over 2%.

Yesterday's session saw Sandisk (SNDX) plunge 12% and Marvell Technology (MRVL) slump 8%, leading S&P 500 decliners. Mining stocks followed suit with Coeur Mining (CDE) and Hecla Mining (HL) down 7% and 6%, respectively. AST SpaceMobile (ASTS) tumbled 17% after a $1 billion private offering of convertible notes. On the upside, Abbott Laboratories (ABT) surged 10% after beating Q2 earnings and raising full-year guidance.

Markets are signaling a correction in AI-driven tech valuations while geopolitical risks intensify scrutiny on semiconductor supply chains. Moonshot's breakthrough challenges U.S. dominance but may ultimately spur innovation efficiency across the sector.