Tech Stocks Wobble as AI Demand Fears Emerge

U.S. stock futures showed minimal change on Monday evening, as technology stocks continued their downward trend, impacting the S&P 500 and Nasdaq Composite for the second session in a row. S&P 500 and Nasdaq 100 futures edged slightly higher, while Dow Jones Industrial Average futures hovered near the flat line. The broad market index, the S&P 500, fell 0.07%, and the tech-heavy Nasdaq closed 0.51% lower on Monday. These declines follow recent market rallies where both the S&P and Nasdaq reached new record highs last week.

Memory chip stocks faced significant pressure. Seagate tumbled nearly 7% after its CEO, Dave Mosley, indicated potential difficulties in scaling production to meet artificial intelligence-driven demand, stating that building new factories "would just take too long." Micron Technology also fell close to 6% in response. Other AI-related stocks also saw declines on Monday. Market strategist Kevin Gordon suggests the market rally may have seen its peak, noting that positioning indicates less sharp rallies than those seen since March lows.

In separate news, President Donald Trump announced via Truth Social on Monday that he had decided against proceeding with a planned attack on Iran scheduled for Tuesday. This decision reportedly came after leaders from three Middle Eastern regional powers requested he delay the action. Looking ahead, traders will be monitoring earnings reports from Home Depot, Eagle Materials, and Amer Sports before Tuesday's opening bell, as well as the release of April's pending home sales data.