Nasdaq futures slide as AI spending fears and rate worries hit markets

Nasdaq-linked futures dropped 2% on Tuesday as investors retreated from the high-growth names most exposed to expensive financing, with worries about AI spending colliding with fresh bets that U.S. rates could stay elevated into 2026. The move spilled across global markets, pulling Europe and Asia lower after the prior Wall Street selloff and leaving crude oil and precious metals weaker as well.

The clearest European readout came from the STOXX 600, which fell 1.3% to 631.06 points by 0828 GMT, its lowest level since June 12. The decline showed how quickly rate anxiety and scrutiny of AI capital spending were spreading beyond U.S. tech futures and into broader equity benchmarks.

Pressure on valuations has intensified after BofA Global Research and Deutsche Bank said on June 22 they expect the Federal Reserve to raise rates in 2026, citing economic resilience and a more hawkish stance under new Chair Kevin Warsh. For technology and other long-duration growth stocks, higher borrowing costs matter because the economics of data centers, specialized chips and power-hungry infrastructure become harder to justify when capital is more expensive.

Morgan Stanley added to that concern on June 10, forecasting that global AI-related debt issuance would more than double to nearly $570 billion in 2026. That estimate points to a market in which the AI boom is increasingly being financed through bonds and other credit-market funding rather than cash flow alone, raising the stakes for companies still trying to prove how quickly those investments will pay off.

The shift is already visible in deal activity. SpaceX, fresh off its Nasdaq debut, is preparing a bond offering of at least $20 billion, a sign that even marquee growth companies are leaning more heavily on debt to fund expansion. Ipek Ozkardeskaya of Swissquote Bank said SpaceX was effectively "jumping on the bond train" and warned that Big Tech could be spending too much on AI infrastructure.

For investors, the message was broader than a one-day tech pullback. The market is starting to test whether AI enthusiasm can withstand a tougher financing environment, and whether higher rates will eventually squeeze the valuations that have powered the Nasdaq’s rally.