U.S. stock futures fell on Tuesday as a sell-off in major technology stocks spread to Asian artificial intelligence-related shares, while investors awaited further progress in U.S.-Iran talks. According to Odaily, Asian tech shares were hit hard on Tuesday, ending an eight-day winning streak, with Japan and South Korea markets retreating and South Korean stocks dropping nearly 10%.

The report said mega-cap technology stocks have been moving in tandem. Alphabet was described as weak, and SpaceX fell as IPO enthusiasm faded, with cautious sentiment spreading across leading tech names and the broader sector.

The shift was contrasted with last year, when many AI-related companies were widely favored by investors. The report said the market is now moving into a phase focused on performance verification, with investors seeking tangible returns from large-scale spending on AI infrastructure.

Odaily highlighted companies such as SpaceX, described as having negative cash flow while still raising $75 billion through an IPO. The report said market sentiment remains tense and attention this week is expected to turn to Micron Technology’s earnings call.

Gam Investment Management fund manager Jian Shi Cortesi said many investors hold AI-related stocks with sizable gains and that any volatility could prompt profit-taking. Cortesi added that technology stocks are currently particularly sensitive to interest-rate expectations and the possibility of further Federal Reserve rate hikes.