Market Update: Nasdaq Futures Drop Amid AI Concerns
On July 9, 2026, traders were busy on the floor of the New York Stock Exchange, reacting to various market shifts.
This past Friday, Nasdaq 100 futures took a significant hit as worries about the sustainability of spending in artificial intelligence loomed, pushing tech stocks lower globally. The Dow Jones Industrial Average futures fell by 335 points, or 0.6%, while S&P 500 futures dropped 0.9%. Nasdaq 100 futures saw a decline of 1.9%.
Semiconductor stocks in particular faced a rough day. U.S.-listed semiconductor makers suffered considerable losses, with the iShares Semiconductor ETF down 3.7%. Additionally, VanEck shares dropped by 3.4%. On another note, Applied Materials and LAM Research each experienced declines of about 5%. Intel and KLA Co., Ltd. were also affected, though their losses exceeded 4%. Arm and Micron each dipped by 4%, while Nvidia saw a 3% reduction in its stock price.
These downward trends compounded the losses from earlier sessions, mainly driven by the semiconductor sector. For the week, the Semiconductor ETF fell 6.9%, marking the third decline in four weeks. Overall, major stock indices experienced a downward shift compared to previous weeks, with the S&P 500 down 0.6% and the Dow and Nasdaq seeing reductions of 0.2% and 1.5%, respectively.
In the Asia-Pacific region, the sell-off intensified on Friday, particularly among semiconductor manufacturers. Japan’s Nikkei Stock Average closed down by 4%, while Australia’s S&P/ASX 200 dropped 0.5%. Meanwhile, the mainland China’s CSI300 fell by 3.6%. Korean markets were closed for a holiday.
This trend of falling tech stocks carried over into Europe as well. By 10:52 a.m. London time, Dutch semiconductor equipment makers ASMI and ASML saw declines of 5.4% and 4.4%, respectively. STMicroelectronics’ stock plunged by 7%, while Infineon fell by 5.6%, and BE Semiconductor saw a decrease of 5.3%.
In a note released Friday morning, strategists from BBH expressed concern, noting that investors appear to be questioning the longevity of the current AI capital investment surge. They pointed to a report from the Bank for International Settlements, which cautioned that boom-bust cycles are typical with past surges related to innovative technologies.
Contrastingly, Barclays strategists remained unfazed by the tech market’s fluctuations. They suggested that while volatility may linger, this could create enticing entry points for long-term investors interested in AI themes.
On another front, tensions between the United States and Iran escalated further, with the U.S. Central Command announcing a continuation of its strikes against Iranian military targets. Iranian officials responded by targeting U.S. forces in Syria and Bahrain, claiming their operations have expanded throughout the Middle East. This escalation disrupts a fragile ceasefire and threatens the flow of energy through the critical Strait of Hormuz, a vital conduit for about 20% of global oil shipments.
