U.S. stock futures were largely flat on Tuesday night as Wall Street continued to digest a stretch of weakness in major indexes and braced for Nvidia’s upcoming earnings report — a key test for the momentum behind the artificial intelligence trade.
Futures linked to the Dow Jones Industrial Average edged down about 0.1%, while contracts tied to the S&P 500 slipped roughly 0.2%. Nasdaq 100 futures were lower by 0.3%.
Indexes Extend Losses
The sluggish futures follow another downbeat session for equities. The Dow and S&P 500 ended lower for a fourth straight day, marking the longest losing streak for the S&P 500 since August. The Nasdaq Composite fell for the fifth time in six sessions as selling pressure continued to concentrate in technology shares.
In broader markets, Bitcoin briefly dipped below $90,000 before stabilising, while gold prices rebounded after touching a one-week low.
Most sectors managed modest gains on Tuesday, but heavyweight tech names again dragged on the major averages. Shares of Nvidia, Microsoft, Palantir and AMD all closed in the red, pulling the Technology Select Sector SPDR Fund (XLK) down by 1.6%. Tech and consumer discretionary stocks remain the weakest performers so far this month, while health care continues to outperform.
All Eyes on Nvidia
Investor sentiment now hinges on Nvidia’s third-quarter results, set to be released after Wednesday’s closing bell. Analysts expect another strong quarter, powered by unrelenting demand for AI processors and data-center hardware.
But expectations are sky-high: Nvidia, now the largest company in the S&P 500, must deliver a sizable beat to calm concerns that the extraordinary AI-driven rally has pushed valuations for chipmakers and cloud hyperscalers to overheated levels. Recent profit-taking suggests traders are increasingly wary of that risk.
Retail Earnings Ahead
Before markets open on Wednesday, Target, Lowe’s and TJX Companies will report their quarterly numbers. With economic data releases delayed by the ongoing U.S. government shutdown, these results could provide clearer insight into the strength of consumer spending heading into the holiday season.
Investor Anxiety Rising
Some strategists warn that the recent turbulence in tech isn’t surprising given how heavily the sector has dominated returns this year. Concentrated exposure to AI stocks—both in major indexes and in investor portfolios—could also be amplifying volatility.
Despite strong performance year-to-date, many investors remain cautious, worried that any stumble from the market’s biggest tech names could trigger broader pullbacks as traders scramble to rebalance their positions.
