US stock futures fell as investors shifted from technology stocks to cyclical stocks.
Cisco Systems Inc shares rose 7.6% after its fiscal first-quarter earnings beat expectations, supported by strong demand from the artificial intelligence (AI) sector.
Meta Platform shares fell 3%, while Amazon and Tesla fell around 2%. Palantir Technologies shares fell 3.6% and Alphabet fell 1.6%.
A share sale by Japanese technology company SoftBank raised market concerns about an AI valuation bubble to fund $40 billion and $540 billion commitments to OpenAI and the Stargate project.
Nvidia Corporation shares fell 5% after the share sale, but rebounded 1.8% yesterday.
Investors continued to sell off major technology stocks yesterday on growing doubts about the surge in valuations driven by AI.
The S&P 500 index fell 0.3% to 6,857.25 points, the Dow Jones fell 0.1% to 48,330.0 points, while the technology-focused Nasdaq Composite fell 0.4% to 25,531.0 points.
Market attention is now shifting to Congress' efforts to end the protracted government shutdown.
The House of Representatives began debating a bill yesterday to increase funding and end the longest US government shutdown in history, ahead of a vote.
This situation occurs after the Senate passed the bill earlier this week, only awaiting approval from the House of Representatives and US President Donald Trump as the final step before it becomes law.
The Republican majority in the House of Representatives is expected to support the bill.
The bill aims to provide government funding until January 30 and end the federal government shutdown, which is now in its 43rd day.
Optimism about the government reopening has driven Wall Street higher this week, as investors expect the disruption to federal services to end soon.
