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(Bloomberg) — US stock futures pointed to renewed weakness in technology shares after Samsung Electronics Co.’s earnings failed to satisfy investors, renewing pressure on chipmakers across global markets.
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Nasdaq 100 futures fell about 1% as of 7:30 a.m. in New York, while S&P 500 contracts slipped 0.2%. The decline followed a selloff in Seoul, where Samsung shares tumbled as much as 10%, dragging down South Korea’s memory-chip makers and the Kospi Index after results that topped analyst estimates but fell short of elevated buy-side expectations.
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The disappointment reverberated in US premarket trading, with Micron Technology Inc., Sandisk Corp. and other semiconductor shares falling as investors reassessed expectations for companies tied to the artificial intelligence spending boom.
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The weakness comes as SpaceX joins the Nasdaq 100 Index on Tuesday, a move expected to prompt portfolio rebalancing across passive and active funds. The aerospace and satellite company also received a wave of bullish analyst initiations after the expiration of the post-IPO quiet period, with at least six banks including Morgan Stanley and Goldman Sachs Group Inc. assigning buy-equivalent ratings.
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Despite Tuesday’s pullback, positioning data suggest investors have yet to become excessively exposed to equities. Citi strategists led by David Chew said US equity positioning continues to improve, driven largely by short covering in the S&P 500 and a steady increase in fresh long exposure to the Nasdaq 100 and Russell 2000. Neither bullish nor bearish positioning has reached capitulation levels, they said.
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Goldman Sachs Group Inc. strategists also struck a constructive tone heading into earnings season, arguing that capital-intensive businesses are poised to outperform companies whose assets are primarily human or digital. Investors remain under-positioned for a world in which infrastructure, manufacturing capacity and physical assets regain strategic importance, a team led by Guillaume Jaisson wrote.
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Elsewhere in corporate news, Rivian Automotive Inc. fell in premarket trading after announcing plans to sell 75 million shares to help finance equity contributions tied to a US Department of Energy loan. Crinetics Pharmaceuticals Inc. surged after agreeing to be acquired by Vertex Pharmaceuticals Inc. for $85 a share in cash, valuing the company at roughly $10 billion. Cloudflare Inc. rose after Scotiabank upgraded the software company, citing additional upside from artificial-intelligence adoption.
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—With assistance from Subrat Patnaik.
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English (US)