U.S. stocks were set to open sharply lower Tuesday as a tech sell off that began during the prior session picked up steam overnight, with global markets in Asia routed as memory chip-related shares tumbled. Nasdaq futures were pointing to a nearly 3% decline on Tuesday.

NASDAQ-100(NDX.US) futures slid 2.6%. S&P 500 index(SPX.US) futures were 1.3% lower, while futures tied to the Dow Jones Industrial Average(DJI.US) were down 252 points, or 0.5%.

The NASDAQ(IXIC.US) shed 1.3% in Monday’s session, dragged down by shares of Alphabet Inc. Class A(GOOGL.US) primarily. The selling then picked up globally with South Korea’s Kospi leading the region’s losses. Memory chip leader SK Hynix, which has led a speculative AI frenzy in the country, closed down more than 12%. The South Korea benchmark, which is up 95% this year, was down almost 10%, while Japan’s Nikkei 225 declined 3.55%, breaking eight sessions of gains.

U.S.-traded Micron Technology, Inc.(MU.US) then followed suit in early U.S. trading, with the memory chipmaker down 7% in premarket action. Sandisk Corporation(SNDK.US) fell more than 8% while components maker Seagate Technology Holdings PLC(STX.US) also shed around 7%. Intel Corporation(INTC.US) pulled back nearly 7%, while Advanced Micro Devices, Inc.(AMD.US) and QUALCOMM Incorporated(QCOM.US) lost more than 6% each.

The Spdr Select Sector Fund - Technology(XLK.US) dropped 3% in early trading Tuesday. The VanEck Vectors Semiconductor ETF(SMH.US) fell around 5%. Meanwhile, SpaceX(SPCX.US) traded more than 2% lower, putting it on pace for its fourth straight losing session.

Alphabet continued its losing ways, down almost 2% after a 5% down day on Monday tied to concerns about high-profile AI talent departures at the company.

“The AI beneficiaries are the sell off and I don’t think they’re expensive, but they’re crowded,” said Andrew Slimmon, a senior portfolio manager at Morgan Stanley Investment Management, on CNBC’s “Squawk Box” Monday. “It’s captured kind-of the zeitgeist of the momentum traders and when that happens, you’re going to have sharp sell offs like we’re having. I’d argue it’s healthy.”

Recent IPO Cerebras will report earnings after the bell Tuesday, while Micron will report results on Wednesday after the close.

Defensive-oriented stocks were higher in premarket trading, with Walmart Inc.(WMT.US) and Johnson & Johnson(JNJ.US) higher.

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As of 03:48 PM Riyadh Time, top pre-market movements are as follows:

Iran-US Talks: Major Progress Toward Peace

• Iran reports "significant progress" after all-night talks with the US, aiming to finalize a peace agreement within two months.
• The US permits Iran to sell oil in US dollars, including to US buyers, after VP Vance says inspectors can return to Iran this week.

South Korean Stocks Plunge Over 8%

South Korean stocks dropped more than 8%, activating circuit breaker, as chip giants were sold off amid renewed worries over an overextended rally.

Hedge Funds Turn Net Sellers of Equities

Goldman Sachs data reveals hedge funds sold global equities net last week, first time in five weeks, with biggest sales in North America and Europe.

Dan Niles Reduces Stakes in Tech Giants

Tech investor Dan Niles cuts investments in hyperscalers and chip stocks despite gains, citing concerns over September guidance. Read in detail>>

SpaceX Stock Plummets Post-IPO

• SpaceX(SPCX.US) stock dropped 16% on Monday, losing market cap equivalent to Palantir and Robinhood combined. Read in detail>>
• Cathie Wood's ARK Invest doubled its SpaceX(SPCX.US) position on June 22, following the stock's sharpest post-IPO decline.
• SoftBank's Masayoshi Son says Elon Musk's space data center has limited value, and AI race will be won by ground-based computing power.
• SpaceX's high rating sparks questions; Moody's gave NVIDIA Corporation(NVDA.US) a Baa1 rating nearly a decade ago, noting its low debt and strong cash flow post-IPO.
• SpaceX has inked a multi-billion dollar pact with AI startup Reflection AI, offering computing resources, shifting towards AI infrastructure provision.

Nvidia Chip Prices: Prediction Markets Forecast Drop

Prediction markets indicate expectations of declining prices for NVIDIA Corporation(NVDA.US) chips.

Trump Emphasizes Quantum Leadership Investment

President Trump states unprecedented investment in quantum leadership, though details on specific initiatives or amounts remain undisclosed.

Tesla Fatal Crash Under Investigation

• NHTSA is probing a June 19 fatal crash in Texas involving a Tesla Motors, Inc.(TSLA.US) Model 3 hitting a house, killing a 76-year-old; Musk denies FSD was in use.
• Tesla Motors, Inc.(TSLA.US) saw European sales jump for the fourth straight month in May, with new vehicle registrations more than doubling year-on-year to 28,610.

Oracle Slashes 21,000 Jobs Amid AI Shift

Oracle Corporation(ORCL.US) cut around 21,000 jobs over the past year to boost efficiency and integrate AI into its business operations.

Intel Stock Plummets in Premarket

Intel Corporation(INTC.US) stock dropped nearly 8% in Tuesday's premarket as investors fled large-cap tech and semiconductor stocks amid a risk-off sentiment, with Nasdaq futures down 2.77%. Read in detail>>

Micron's Strategic Move With Anthropic

Micron Technology, Inc.(MU.US) signs supply deal & invests in Anthropic's funding round, strengthening ties in AI memory, storage, and enterprise adoption. Read in detail>>

Rocket Lab Sets New Space Record

Rocket Lab(RKLB.US) launched the US Space Force VICTUS HAZE mission in 16 hours 42 minutes, setting a new responsive space record. Read in detail>>

Korn Ferry's Strong Q Results

Korn Ferry(KFY.US) reports Non-GAAP EPS of US$1.40, beating estimates by US$0.02, with revenue of US$768.3M, exceeding by US$23.15M.