Nasdaq 100 futures gain 1% as chip stocks rebound from selloff

Nasdaq 100 futures rose 1.01% in pre-market trading Tuesday as semiconductor stocks rebounded from Monday's selloff, with memory chip makers leading gains across the sector. Dow futures gained 0.47% and S&P 500 futures rose 0.53%, with all three major index futures in positive territory.

"Investors will want another beat-and-raise quarter, but more importantly, confirmation that the massive AI infrastructure spending cycle remains alive and well," said Jay Woods, chief market strategist at Freedom Capital Markets.

SanDisk rose 3.88%, Intel gained 3.77%, SK Hynix advanced 3.53%, and Marvell Technology climbed 3.53% in pre-market trading. Micron added 2.75%, Western Digital gained 3.27%, and Seagate Technology rose 2.96%. Lam Research advanced 3.19%, Arm Holdings gained 2.89%, and Lumentum rose 2.88%. Nvidia added 1.42%, TSMC gained 1.49%, and Broadcom rose 1.21%.

The rebound follows Monday's selloff where the Roundhill Memory ETF fell nearly 6%, Samsung Electronics plunged 9% in Seoul after its shareholder return plan disappointed investors, and Micron dropped 3.73% to $930.45. SanDisk fell 5.39% to $1,509.80, while AMD declined more than 2% to $463.08 and Intel dropped 2% to $88.30. The broader iShares Semiconductor ETF closed more than 2.5% lower Monday, with Nvidia falling nearly 3% after a Bloomberg report that the company had informed some of its largest customers that servers containing its AI chips will see price hikes of more than 15% on systems shipped in early 2027.

The rebound comes ahead of Nvidia's quarterly results Wednesday, with the AI chipmaker expected to report more than $92 billion in revenue. Personal consumption expenditures data and Fed Chair Kevin Warsh's Jackson Hole speech Friday will test whether the AI-driven rally can sustain its momentum.

Memory Chip Stocks Lead the Recovery

The pre-market strength was concentrated in memory and storage names that had been hardest hit Monday. SanDisk, the S&P 500's biggest gainer for the year, fell 5.39% to $1,509.80 in Monday's session before rebounding 3.88% Tuesday. Western Digital rose 3.27% after dropping around 3% Monday, while Seagate Technology gained 2.96%.

The optical communications sector also strengthened, with Applied Optoelectronics up more than 3% and Corning, Coherent, and Lumentum each gaining over 1%. Coherent rose 3.49% in pre-market trading, while Lumentum gained 2.88%.

In Hong Kong, the Hang Seng Index slipped 0.02% and the Hang Seng Tech Index fell 0.12%, but semiconductor names bucked the trend. Chinese chip designers Montage Technology and GigaDevice, along with foundry Nexchip Semiconductor, climbed nearly 5%.

What's at Stake This Week

The synchronized strength across U.S. futures and Hong Kong-listed semiconductor names points to converging risk appetite across Asia-Pacific and North American markets. The 10-year Treasury yield was around 4.71% Monday, down three basis points from Friday, while the 30-year yield eased to 5.23% after hitting a 19-year high of 5.34% last week. The U.S. dollar index was 0.2% higher at 99.04, and gold traded near $4,700 an ounce.

Nvidia is scheduled to report results after the close Wednesday, and Marvell Technology reports Thursday. Both updates are expected to provide signals on AI demand and data-center spending. Any indication that AI infrastructure investment remains strong could help stabilize the broader semiconductor trade.

This article is for informational purposes only and does not constitute investment advice.