US stock futures fall after tech selloff, oil climbs on tensions

US stock futures slipped as traders kept selling richly valued technology shares and leaned into energy, a shift that suggests the AI trade may be facing more than a one-day reset. Nasdaq 100 futures fell 0.5% and S&P 500 futures dropped 0.4%, extending the pressure that hit Wall Street after Friday’s tech-led rout.

The underlying Nasdaq 100 had its biggest fall since April 2025 on Friday, after a strong rally in artificial intelligence stocks began to unwind. The index sank about 5% on June 4, while a gauge of chipmakers tumbled 10%, a sharp break that showed how concentrated the selloff had become. Broadcom Inc.’s earnings outlook had already jolted traders, helping put the brakes on the AI advance.

The damage was not limited to New York. Nikkei futures in Japan and Kospi futures in South Korea were set to weaken as the fallout spread to Asian technology shares, underscoring how dependent the recent global equity run had been on semiconductor and AI names. When those leaders lose momentum, the rest of the market has to carry more of the load, and that breadth test is now front and center.

Bond markets are part of the same story. A solid US jobs report increased expectations that the Federal Reserve’s next move could be an interest-rate hike, pushing yields higher and making long-duration growth stocks less attractive. That is why richly priced tech has been hit hardest, while investors have looked for shelter in sectors with more immediate cash flow and stronger links to real-world pricing power.

Oil added another layer of pressure. Brent crude advanced 2.8% to $96 on June 3 as tensions between the United States and Iran intensified, with Iran firing missiles at Israel and threatening a fragile ceasefire. For ordinary investors, the key signals now are clear: if bond yields stay elevated, oil keeps climbing and the selloff keeps broadening beyond tech, the rotation could last longer than the market’s first bounce might suggest.