U.S. stock index futures pointed to a weaker start on Tuesday, with markets expected to surrender part of Monday's gains as renewed selling pressure emerged across the technology sector. Technology shares looked set to lead the decline after South Korean memory chip giant Samsung Electronics suffered a near 7% drop despite reporting a 19-fold jump in quarterly profit, as investors remained concerned about the sustainability of spending on artificial intelligence and future demand for AI-related hardware. Additional pressure on semiconductor stocks followed a Reuters report that Chinese AI company DeepSeek is developing its own artificial intelligence chip, potentially reducing reliance on established suppliers. On Monday, Wall Street finished broadly higher, with the Nasdaq Composite gaining 288.49 points, or 1.1%, to close at 26,121.16, the S&P 500 advancing 54.19 points, or 0.7%, to 7,537.43, and the Dow adding 155.84 points, or 0.3%, to finish at 53,055.91. The Institute for Supply Management reported that activity in the U.S. services sector expanded at a slightly slower pace in June, with the ISM Services PMI slipping to 54.0 from 54.5 in May, matching economists' expectations.
Samsung Electronics Co LtdSamsung shares fell nearly 7% despite profit jump due to concerns about AI spending sustainability and future demand for AI hardware.
Dell Technologies IncConcerns about sustainability of AI spending and future demand for AI hardware weigh on technology sector, including Dell.
AJ Bell plc