5 Things to Know Before the Stock Market Opens on Tuesday

• The semiconductor index (iSOXX) fell nearly 6% premarket while the Roundhill Memory ETF plunged 12% as AI hardware and software stocks stumbled
• SpaceX stock briefly dropped below its $150 IPO opening price from June 12, hitting its lowest level ever after falling 16% on Monday
• Tesla EU registrations doubled to 28,610 vehicles in May compared to the prior year, outpacing the 39% growth rate for all electric vehicles in the region

Market Summary: Tech Sell-Off Drives Futures Lower

Market Overview:

Stock futures signal significant losses Tuesday as the technology sector sell-off intensifies. S&P 500 futures dropped 1.2%, Nasdaq futures plunged 2.6%, and Dow futures fell 0.4%. The 10-year Treasury yield declined to 4.49% from 4.51%.

Key Commodity Movements:

• WTI crude oil steady at $73.90/barrel amid U.S.-Iran negotiations and temporary lifting of Iranian oil sanctions
• Gold futures down 1.4% to $4,145/ounce
• Bitcoin retreated to $62,300 from Monday's high of $65,500

AI and Chip Sector Collapse:

The AI trade faces major headwinds with semiconductor and memory stocks leading declines. Major players including Nvidia, Alphabet, Intel, AMD, and Micron Technology are sinking in premarket trading. The iSOXX semiconductor index dropped nearly 6%, while the Roundhill Memory ETF tumbled 12%. This follows earlier concerns about overvaluation after this year's rally.

Company-Specific News:

*SpaceX:* Stock fell to its lowest level since its June 12 IPO, briefly dipping below the $150 opening price. The stock declined 16% Monday after initial post-IPO gains.

*Tesla:* European sales showed strong recovery with 28,610 new registrations in May—double the prior year—outpacing the region's 39% overall EV growth. However, the company faces a new federal investigation into its driver assistance software following a fatal Texas crash.

*FedEx:* Quarterly earnings report due after the closing bell, marking the first results since completing its FedEx Freight spin-off. FedEx Freight reports Thursday.

Market Implications:

The continued tech sell-off suggests investors are reassessing AI valuations amid volatility that echoes earlier monthly concerns about stretched valuations.