Micron and Sandisk fall more than 2% as the chip sell-off resumes in premarket

Micron $MU and Sandisk stock each fell more than 2% in premarket trading on Tuesday as selling pressure returned to AI-linked stocks, according to CNBC.

Seagate $STX, Intel $INTC and AMD $AMD stock each dropped more than 1%, and the VanEck Semiconductor ETF (SMH) pulled back around 1%. Nasdaq $NDAQ-100 futures slipped, Dow Jones Industrial Average futures edged higher and S&P 500 futures were little changed.

CoreWeave stock traded 4% lower ahead of the market open as investors examined the debt used to pay for its data-center expansion, according to The Wall Street Journal. The stock had shed over a quarter of its value the previous week. CoreWeave stock closed lower on Monday after early gains faded following a Goldman Sachs $GS upgrade to buy, according to CNBC.

The S&P 500 rose 0.4% over Monday's regular session, and the Nasdaq Composite gained over 1%. Nvidia $NVDA stock added 1.4%, Tesla $TSLA stock jumped 3.8% and Alphabet $GOOGL stock rose around 1%.

The gains followed the prior week's steep sell-off, which reached the wider market amid worries over the heavy debt companies are taking on to fund AI build-outs, according to CNBC. Jose Torres, senior economist at Interactive Brokers, attributed Monday's rebound to investors unwinding their hedges once the price of insuring against market swings spiked on Friday, according to CNBC.

Markets in Asia-Pacific declined on Tuesday. South Korea's Kospi lost 3.73%, Japan's Nikkei 225 fell 1.3% and Australia's S&P/ASX 200 slid 0.33% to 8,816.9. Elice Group stock fell more than 30% in its trading debut. The STOXX Europe 600 was lower for the second session running.

U.S. crude oil rose more than 5% to $109.24 a barrel, and oil reached a five-month high, according to MarketWatch. Brent crude rose 1.78% to $111.50.

SpaceX is due to report its second earnings as a public company on Tuesday afternoon, according to The Wall Street Journal. Netflix $NFLX and United Airlines are also scheduled to report. General Motors $GM reported earlier Tuesday.