U.S. stock markets opened on a mixed note Tuesday, reflecting ongoing investor concerns regarding the tech sector and the implications of artificial intelligence (AI) on various industries. The Nasdaq Composite, heavily weighted towards technology stocks, experienced the most significant decline, dropping approximately 0.5%. In contrast, the S&P 500 decreased by around 0.2%. The Dow Jones Industrial Average, featuring fewer tech companies, managed to gain nearly 0.3%.
This fluctuation follows a long weekend due to Presidents Day, with traders still wary about the AI-driven disruptions affecting companies across sectors including wealth management, transportation, and logistics. The Dow and S&P 500 have seen declines in four of the last five weeks as these concerns have persisted.
As the earnings season nears its conclusion, investors are closely monitoring reports. Notable companies reporting today include Constellation Energy, Medtronic, and Palo Alto Networks. However, the week’s primary focus will be on Walmart’s quarterly earnings, which will be the first since the retailer crossed the trillion-dollar market cap threshold.
In other corporate news, shares of Paramount Skydance surged by 5% following confirmation that Warner Bros. Discovery is willing to reopen acquisition discussions after rejecting an earlier bid from the studio. Warner Bros. has requested a more competitive offer from Paramount, which previously proposed a cash deal of $30 per share to acquire the entire company.
This week is also filling up with significant economic data that had been delayed due to the recent partial U.S. government shutdown. Focused expectations surround the December Personal Consumption Expenditures index set for release on Friday, especially after the latest consumer inflation report indicated lower-than-anticipated inflation levels. Additionally, an advance look at fourth-quarter GDP will accompany the PCE data, providing insight into the current economic climate as discussions continue on potential interest rate adjustments by the Federal Reserve.
Further analysis from Bank of America has highlighted a growing disparity in the economy, indicating that while corporate profits are on the rise, labor income is decreasing. This trend underscores the persistent “K-shaped” recovery, where different segments of the economy evolve at divergent rates. Analysts noted that corporate profits’ growth often outpaces improvements in wages, raising concerns about whether this represents a sustainable recovery for labor.
In trading activity, General Mills experienced a notable stock decline of over 3% in premarket trading after the company adjusted its 2026 sales outlook downward, citing weak consumer sentiment and increased uncertainty impacting their growth projections.
Moreover, DTE Energy’s shares climbed by as much as 10% ahead of its earnings report, while Norwegian Cruise Line shares also saw growth due to an increase in investor interest from activist firm Elliott, which has built a significant stake in the company.
Industry movements are also notable, as Hapag-Lloyd announced its acquisition of ZIM Integrated Shipping Services for $4.2 billion, sending ZIM’s shares soaring by over 35% in early trading.
In financial markets, the dollar showed signs of strength despite expectations for multiple interest rate cuts from the Federal Reserve this year, as traders reassess the implications of steep rate cuts on the economy.
Overall, the mixed results in the stock market point to a cautious sentiment among investors, grappling with both the immediate impact of AI technologies and broader economic trends as they navigate an uncertain market landscape.
