US technology stocks are expected to rebound on Wednesday, following a two-day period earlier in the week where artificial intelligence valuation concerns led to a nearly $1.3 trillion decrease in the market capitalization of Nasdaq 100 companies. Contracts on the Nasdaq 100 gained 0.5% by 6:33 a.m. in New York, after experiencing a 3.3% slump in the previous session. S&P 500 futures also saw a slight increase of approximately 0.2%.
This rebound suggests a potential stabilization after the significant sell-off. The Cboe Volatility Index, which tracks market uncertainty, retreated further after briefly touching 20 on Tuesday, indicating a decrease in investor fear. The broader market had been heavily influenced by the performance of AI-linked stocks, which have seen their values surge, making their movements critical to overall market direction.
The recent selling largely targeted companies that had seen substantial value appreciation due to the artificial intelligence frenzy. For example, chipmaker Micron, which had tumbled over 13% on Tuesday, gained 3.2% overnight. Similarly, Marvell Technology rose 1.5% in premarket trading after skidding 9.4% a day earlier. This highlights the volatility associated with these high-growth technology stocks.
