U.S. stock futures were sharply lower on Tuesday, as global stocks sold off in the wake of a major tech decline on Wall Street.
During Monday's regular session, a decline in the technology sector pulled the
S&P 500 to a loss of 0.37%. The tech-dominant Nasdaq Composite fell 1.32%. On the other hand, a gain in shares of Caterpillar boosted the Dow by 148.01 points, or 0.29%.
Investors rotated out of the "Magnificent Seven" names on Monday, with
Amazon dropping nearly 5% and Meta Platforms falling 2%. Alphabet shares slipped 5%, notching their worst daily performance in over a year, as brain drain concerns mounted following the departure of two high-profile artificial intelligence researchers for rivals. 
Elon Musk's rocket maker
SpaceX fell 16% and posted its third straight negative session.
The tech sell-off went on to grip international markets on Tuesday.
Asia-Pacific markets closed in the red after giving up gains from early in the session, with South Korea's
Kospi leading the region's losses.
The benchmark index was down almost 10%, ending the trading day at 8,203.84, while Japan's
Nikkei 225 declined 3.55% to close the trading day at 69,788.38, breaking eight sessions of gains.
European shares also fell sharply on Tuesday, with the pan-European
Stoxx 600 down 1.2% in early trading.
The Stoxx 600 Technology index led regional losses, with a decline of 3.2%. Dutch semiconductor equipment maker ASMI and chipmaker STMicroelectronics, both down more than 6%, were among the biggest downward movers on the Stoxx 600.
"Anything AI- and tech-related is still an area of focus for retail traders. They're just not as active in individual stocks as they have been in the past,"
said Liz Ann Sonders, chief investment strategist at Charles Schwab, on CNBC's " Closing Bell" on Monday afternoon. "Not a disinterest in the broader technology or AI space, it's just the vehicles. I think it's a little bit more of a focus on ETFs more broadly, as opposed to those individual stock trades."
Sonders added that corporate earnings continue to serve as the most important underlying support for stocks at the moment.
Also on Monday, oil prices slipped after mediating parties Qatar and Pakistan made a joint statement detailing that the U.S. and Iran
have made progress during talks in Switzerland toward reaching a final deal within 60 days. This includes an agreement to establish a committee and end military operations in Lebanon. The U.S. Treasury Department later authorized the sale of Iranian oil through August, causing oil prices to trade around their session lows.
South Korea’s Kospi tumbles nearly 10%, leading Asia market losses
Asia-Pacific markets closed in the red after giving up gains from early in the session, with South Korea's Kospi leading the region's losses.
The benchmark index was down almost 10%, ending the trading day at 8,203.84, while the small-cap Kosdaq was 7.94% lower at 891.52.
Japan's
Nikkei 225 declined 3.55% to close the trading day at 69,788.38, breaking eight sessions of gains. The Topix lost 2.56% to close at 3,990.38.
In Australia, the
S&P/ASX 200 lost 0.33% to 8,787. Hong Kong's Hang Seng Index fell 1.82% to close at 23,336.28, while mainland China's CSI 300 was down 2.77% to 4,919.39.
— Lee Ying Shan
European tech stocks plummet
Shares listed in Europe fell at the open on Tuesday, tracking a global sell-off centered around tech stocks.
European technology stocks shed 2.7% in early trading, with regional chip stocks notching some of the biggest declines in the region.
— Chloe Taylor
South Korea's Kospi falls over 4%; SK Hynix and Samsung Electronics plunge 5%
South Korean stocks fell on Tuesday, with the benchmark Kospi sliding 4.07% as heavyweight chipmakers led losses.
Shares of SK Hynix and Samsung Electronics each fell more than 4%, underscoring the market's dependence on the artificial-intelligence trade that has powered much of this year's rally.
On Monday, SK Hynix briefly overtook Samsung Electronics to become South Korea's most valuable listed company by market capitalization.
— Lee Ying Shan
Asia-Pacific markets open mostly in the green
Oil prices rise as investors continue to watch U.S.-Iran moves, Citi sees ‘overhang’ disappearing
Oil rose slightly early Tuesday, fluctuating as investors show cautious optimism about an end to the conflict in the Middle East.
The price of the commodity fell overnight after the U.S. Treasury issued a
60-day license that authorizes the production, delivery and sale of oil from Iran. It allows the importation of Iranian crude to the U.S., and payment for the oil to be made in dollars. The license expires Aug. 21.
However, there were concerns that Iran may use the profits from oil sales to rebuild its military. President
Donald Trump was asked on Monday if he could ensure that such a scenario would not play out.
— Justina Lee
Asia markets set to open higher as U.S.-Iran talks make progress
Asia-Pacific markets were set to open higher on Tuesday as investors welcomed signs of progress in U.S.-Iran negotiations.
Talks between Washington and Tehran have made "great progress" despite periods of tension, U.S. Vice President JD Vance said on Monday.
Japan's
Nikkei 225 was poised to gain, with the Chicago futures contract at 73,020 and its Osaka counterpart last trading at 73,090 compared with the index's previous close of 72,353.96.
Hong Kong
Hang Seng index futures were at 23,830, higher than the index's last close of 23,768.52.
In Australia, futures last traded at 8,831, compared with the
S&P/ASX 200's previous close of 8,816.10.
— Lee Ying Shan
This week's earnings calendar
Here is the earnings calendar for the rest of the week:
Korn Ferry(Tuesday a.m.) Carnival(Tuesday a.m.) FedEx(Tuesday p.m.) KB Home(Tuesday p.m.) Cerebras(Tuesday p.m.) Paychex(Wednesday a.m.) Micron(Wednesday p.m.) McCormick(Thursday a.m.) Commercial Metals(Thursday a.m.) Darden Restaurants(Thursday a.m.) Winnebago(Thursday a.m.) BlackBerry(Thursday p.m.)
— Robert Hum and Lisa Kailai Han
Seven of the 11 GICS sectors end Monday higher
On Monday, seven of the 11 GICS sectors rose to end the session higher.
Real estate stocks were the day's outperformers, rising 1.38%. This performance was followed by the energy and healthcare sectors, which respectively gained 1.24% and 0.87%.
On the other hand, communication services stocks were the day's laggards, falling 3.83%. Consumer discretionary and staples stocks followed, shedding 2.33% and 0.68%, respectively. Lastly, the information technology sector ended the day 0.04% lower.
— Lisa Kailai Han
Stock futures open little changed
Stock futures traded near flat on Monday night.
Shortly after 6 p.m. ET, futures linked to all three major averages were trading little changed.
— Lisa Kailai Han
<small>Source: CNBC</small>
