Market Jitters as Nvidia Plunge Sparks Tech Selloff

U.S. stock futures and European shares steadied after a tech-led selloff triggered by Nvidia's 17% plunge. The emergence of a low-cost Chinese AI model raised doubts about AI leaders, affecting tech shares worldwide. Market reactions were mixed, with some stability expected from upcoming earnings reports.

U.S. stock futures and European shares found stability on Tuesday following a dramatic tech-led selloff the previous day. Investors reined in moves towards safe-haven government bonds, though market participants remained cautious.

Nvidia's 17% plummet on Monday created turmoil, resulting in a historic market capitalization loss of nearly $593 billion. The Philadelphia semiconductor index, also significantly impacted, saw its largest decline since March 2020. A low-cost Chinese AI model has sparked investor concerns over the dominance of well-established AI companies, affecting tech and chip stocks across global markets.

Despite signs of recovery, with Nvidia seeing a 5% rise in premarket trading and Nasdaq futures climbing 0.5%, market players continued to assess the broader impact. Upcoming earnings from major tech companies are expected to bring further scrutiny amid ongoing discussions on corporate computing investments.

(With inputs from agencies.)