Perpetuals on decentralized platforms that trade US stocks around the clock continued to put pressure on AI stocks over the weekend, with Micron down 3.42% to $848.56, SK Hynix down 3.06%, SanDisk down 3.60%, SOXL (triple leverage chips) down 5.45%, DRAM memory down 2.41%, and Nvidia down 0.92%. Meanwhile, the US500 index contract declined by about 0.46% (implicitly to around 7,624 points compared to Friday's close of 7,659.41), hinting at a difficult opening on Monday, but this is not a prediction, as these are 10-20 times leveraged contracts with limited liquidity.

What do permanent contracts reveal?

Memory and Storage: Micron $848.56 (-3.42%), SK Hynix $885.00 (-3.06%), SanDisk $1,249.50 (-3.60%), SKHY Node (SK Hynix ADR) $132.16 (-3.00%), and DRAM (Memory Box) $45.166 (-2.41%).

Chips: The SOXL contract, a triple-leveraged chip index fund, is down 5.45% at 89.134, which implies a roughly 1.8% drop in the chip index if you follow it exactly (our rough calculation).

The giants: Nvidia 212.66 (-0.92%), Tesla 348.88 (-1.23%) and SPCX 143.72 (-1.54%).

Index: US500 -0.46%.

The chart shows that the contract curves show a sharp decline at the end after a period of relative stability, which means a late sell-off at the end of the period shown.

Warning: Contracts are speculative derivatives assuming 10x to 20x, and move according to funding, liquidity and weekend news, and may overreact or reverse direction when the actual market opens.

Why are AI stocks falling? (Friday and week background)

Friday: The Nasdaq closed at 26,140.03 (-2.15%), the S&P 500 at 7,659.41 (-1.09%), and the Dow at 52,002.41 (-0.34%). The semiconductor index fell by about 3.8%, and the storage index lost 6.28%, according to traded data. For the eighth consecutive time, the chip index has declined, the longest streak since 2008, according to Huo Xing.

Stocks: Micron -5.6%, AMD -6.0%, Intel -5.8%, Broadcom -4.5%, Seagate -7.5%, Western Digital -6.9%, SanDisk -6.9%, SK Hynix -6.6%, and nearly all technology stocks in the S&P 500 (68 of 75) closed lower, according to AP.

Week: The iShares chip fund lost about 11.8% (six times the S&P 500's 2.0%), Micron 14.6%, AMD 13.0%, and Nasdaq 4.48% in its worst week since June, and the VIX fear index rose to 19.98 (a four-month high).

Chips in the gains: Nvidia, Micron, AMD and Intel contributed about $2.35 trillion in market capitalization as of October 15, or 28% of the combined gains of the S&P 500 (Opening Bell Daily), so a decline in them puts pressure on the index.

The reason: Concerns about financing AI with debt, with Treasury yields near 5%, Koryowe falling nearly 12% on Friday and nearly 25% for the week, and its bonds yielding near 15%, IMF warnings, rising oil prices, and Chinese competition in the memory.