Tech led a sharp retreat in US stock futures on Tuesday after a mixed session on Wall Street that saw AI optimism in megacap companies drive the S&P 500 and Nasdaq Composite higher.
S&P 500 futures (ES=F) sank 0.9%, while those on the tech-heavy Nasdaq 100 (NQ=F) tumbled roughly 1.3%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, lost 0.6%.
The turnaround comes after AI-heavy tech names fueled gains on Monday. Amazon notched a record close after announcing a new partnership with OpenAI, helping the Nasdaq (^IXIC) advance nearly 0.5%. The S&P 500 (^GSPC) rose roughly 0.2%.
Palantir (PLTR) dropped more than 5% in premarket trading despite the AI-military firm topping third quarter estimates as analysts suggest the stock is overvalued.
Strong Q3 results and elevated AI spending from major cloud players have underpinned investor confidence. But the “Magnificent Seven” tech megacaps, while still market drivers, have delivered uneven performance that has been reflected on Wall Street gauges more broadly.
Looking ahead to the rest of earnings season, another 100-plus reports are due this week. Tuesday is highlighted by AMD (AMD), along with Uber (UBER), Spotify (SPOT) and SuperMicro (SMCI).
Investors are also keeping their eyes on Washington. The US government shutdown continues to delay key economic data, including the jobs report that was slated for release this week.
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