US stock futures experienced a significant decline early Tuesday, primarily driven by the technology sector’s performance following a mixed day on Wall Street. The tech-heavy Nasdaq 100 futures plummeted approximately 1.3%, while S&P 500 futures fell by 0.9%. In contrast, futures for the Dow Jones Industrial Average, which is less reliant on technology stocks, dipped by 0.6%.
This downturn follows a day of robust gains, primarily fueled by optimism surrounding artificial intelligence from major tech companies. On Monday, the Nasdaq managed to close nearly 0.5% higher, with Amazon achieving a historic closing value after announcing a new partnership with OpenAI. The S&P 500 also saw a modest increase of about 0.2% during the same session.
However, not all tech stocks shared in the positive momentum. Palantir Technologies faced a downturn, with its stock dropping over 5% in premarket trading. This decline came despite the company surpassing third-quarter earnings estimates, as analysts suggested the stock might be overvalued.
Investor confidence had been buoyed by strong quarterly results and heightened spending on artificial intelligence from significant cloud service providers. However, the performance of the so-called “Magnificent Seven” tech giants has been inconsistent, contributing to mixed results on various Wall Street indices.
The earnings season is ongoing, with more than a hundred reports expected this week. Notable announcements on Tuesday are anticipated from companies such as AMD, Uber, Spotify, and SuperMicro.
In addition to corporate earnings, investors are closely monitoring developments on Capitol Hill. A U.S. government shutdown remains in effect, leading to delays in crucial economic data releases, including the jobs report that was originally scheduled for this week. This uncertainty could further impact market sentiment as traders navigate the intertwining challenges of economic indicators and corporate performance.
