US stock futures mixed as Middle East tensions and AI trade unwind collide

US equity futures opened to a split screen on Wednesday, with investors caught between two forces pulling in opposite directions: cautious optimism around Middle East diplomatic progress and a brutal unwinding of the AI trade that has defined markets for the better part of two years. The catalyst for the tech-side pain was, paradoxically, a company reporting a 557% year-over-year increase in operating profit. SK Hynix, the South Korean memory-chip giant that supplies the high-bandwidth memory powering Nvidia’s AI accelerators, posted Q2 results that would look spectacular in any other context. Revenue hit approximately $54.5 billion. And yet, its shares cratered nearly 10-11% in Seoul trading. When 557% growth isn’t enough The company also disclosed capital expenditure plans of at least $31 billion for 2026, representing a roughly 50% increase. That number spooked investors who are increasingly asking an uncomfortable question: are hyperscalers overbuilding AI infrastructure relative to actual demand? The damage radiated outward from Seoul with impressive speed. The PHLX Semiconductor Index, the benchmark for the chip sector, dropped more than 5%. Nvidia fell over 3%. AMD declined ...