Nasdaq Futures Plunge as Rising Bond Yields Drive Chip Selloff

The Nasdaq 100 E-Mini futures (NQU26) experienced a significant decline of -1.21% on Tuesday as investors grew increasingly wary of risk due to a global bond market rout. The surge in bond yields, particularly in the 30-year U.S. Treasury, has put pressure on chip and AI-related stocks, which are among the most affected sectors in pre-market trading. Major chip and AI infrastructure firms like Sandisk (SNDK), Micron Technology (MU), and Intel (INTC) suffered losses of more than -5% each.

The bond yield hike is attributed to the ongoing U.S.-Iran situation, which has remained unresolved, along with the potential for elevated inflation. The 30-year T-note yielded 5.33%, marking its highest level since 2007. Meanwhile, oil prices rose following an attack on a vessel in the Strait of Hormuz, resulting in one crew member's death.

Investors are now eagerly awaiting U.S. economic data releases, including Industrial Production, Manufacturing Production, Building Permits, Housing Starts, Pending Home Sales, and Import and Export Price Indexes. The home-improvement retailer The Home Depot (HD), test-equipment manufacturer Keysight Technologies (KEYS), and luxury home builder Toll Brothers (TOL) are scheduled to release their quarterly earnings reports today.