Nasdaq, S&P 500 futures fall as Nvidia turbulence hits AI stocks

Nasdaq and S&P 500 futures fell as turbulence around Nvidia unsettled the cluster of AI-linked stocks that has driven US equity markets, with trading in Seoul halted during the session.

The source material does not give the size of the futures moves, the trigger for the Nvidia turbulence, or the reason Seoul stopped trading, so the scale of the sell-off cannot be stated here.

Attention is now on where the money leaving the AI trade goes. Nifty in India posted its best week since 2021, a contrast that raises the question of whether investors are rotating out of US AI names into other markets rather than leaving equities altogether.

The strain is showing in credit too. Junk bonds are described as cracking at the bottom end of the market, a signal that risk appetite is being tested beyond stocks.

What happens next depends on whether the AI-linked selling deepens or stabilises, and on whether the rotation into markets such as India continues.