SpaceX slides, tech stocks dip — what’s moving markets
Investing.com - Wall Street looks set for a weaker open as investors pull back from technology stocks amid growing concerns about higher interest rates and the massive spending required to sustain the artificial intelligence boom.
Futures tied to the Nasdaq lead declines after another sharp drop in SpaceX shares, while oil prices continue to fall as progress in U.S.-Iran negotiations eases concerns about global supply disruptions. Meanwhile, investors are also weighing fresh bets on quantum computing and signs that competition for AI assets is intensifying.
Nasdaq futures lead market lower
U.S. stock futures fell sharply on Tuesday, with technology stocks once again bearing the brunt of the selling as investors reassessed the outlook for AI-related companies.
By 0433 ET, Nasdaq 100 futures had tumbled 2.8%, while S&P 500 futures fell 1.45%. Dow futures were down a more modest 0.7%.
The pullback comes amid growing concerns that U.S. interest rates could remain elevated for longer than expected, while some investors are also questioning whether the enormous spending on AI infrastructure can continue at its current pace.
Technology and semiconductor stocks have been among the biggest winners of the market’s rally over the past year, making them particularly vulnerable when sentiment shifts.
For investors, the key question is whether the recent weakness represents a healthy pause in the AI trade or the beginning of a broader reassessment of valuations across the sector.
SpaceX slide continues
SpaceX shares extended their recent decline after falling 16.4% on Monday, with the stock losing a further 2.9% in premarket trading.
The drop followed a more cautious assessment from KeyBanc, which argued that the company’s valuation had become increasingly stretched after a dramatic rally following its public debut earlier this month.
Shares closed at $154.59 on Monday, not far above their IPO opening price of $150 and well below their recent high of more than $225.
The selloff wiped roughly $400 billion from SpaceX’s market value and comes as investors debate whether the company’s long-term growth potential can justify its lofty valuation.
SpaceX also launched a senior notes offering and disclosed that it held more than $100 billion in cash and cash equivalents as of June 19.
For investors, the stock’s sharp swings highlight a growing divide in the market. While enthusiasm around AI remains strong, investors are becoming more selective about how much they are willing to pay for future growth.
Qualcomm eyes another AI acquisition
Qualcomm is reportedly in advanced talks to acquire AI chip startup Modular in a deal that could value the company at about $4 billion, according to Bloomberg News.
The reported valuation is more than double the $1.6 billion price tag Modular secured in a funding round less than a year ago, underscoring the intense competition for AI-related assets.
Qualcomm has been looking to diversify beyond smartphones by expanding into areas such as data centers, artificial intelligence and autonomous vehicles. The company is also reportedly exploring a separate acquisition of AI startup Tenstorrent.
The deal would represent another example of established technology companies racing to strengthen their positions in the AI ecosystem as demand for advanced computing infrastructure continues to grow.
For investors, the talks reinforce the idea that AI remains one of the biggest growth themes in technology, even as concerns around valuations create near-term volatility.
Oil extends losses
Oil prices continued to move lower after suffering steep losses in the previous session, as signs of progress in U.S.-Iran negotiations eased concerns about disruptions to global energy supplies.
Sentiment improved after Washington issued a 60-day license allowing the sale and import of Iranian crude oil and petroleum products as part of ongoing diplomatic discussions with Tehran.
The move follows reports of progress toward a broader peace agreement and an extension of an interim ceasefire arrangement.
Investors increasingly believe that more Iranian oil could return to global markets if negotiations continue to advance, helping offset supply concerns that had supported crude prices in recent months.
For markets, lower oil prices could help reduce inflation pressures and support consumers, although energy producers may face pressure if crude continues to weaken.
Trump boosts quantum computing
Quantum-computing stocks rallied after President Donald Trump signed executive orders aimed at accelerating the development of the technology in the United States.
The measures seek to deploy a research-capable quantum computer by 2028 while also accelerating the adoption of quantum-resistant cybersecurity systems across the federal government.
Investors welcomed the announcement, sending shares of companies including Infleqtion, Rigetti Computing, D-Wave Quantum and IonQ higher in premarket trading. IBM also gained after Trump praised CEO Arvind Krishna.
The orders signal that Washington increasingly views quantum computing as a strategic technology and is willing to support its development through government initiatives.
For investors, the move highlights how policy support can quickly boost emerging sectors. While quantum computing remains years away from widespread commercial adoption, many investors see it as a potential long-term growth opportunity beyond today’s AI boom.