US stock futures slipped on Tuesday morning. Investors are still trying to recover from another tough week on Wall Street. Many are unsure about how artificial intelligence will change businesses in the coming years.
Futures linked to the S&P 500 were down 0.29%. Nasdaq 100 futures fell 0.76%. Dow Jones futures dropped 62 points, or about 0.13%.
The market is reopening after the New York Stock Exchange stayed closed on Monday for Presidents’ Day. Traders are coming back with caution instead of confidence.
Big technology companies were under pressure before the market opened. Meta Platforms and Nvidia both fell about 0.8%. Palantir Technologies dropped 2%. Microsoft and Apple also slipped around 0.4%. These companies have strong links to artificial intelligence, so they often move when AI worries grow.
A lot of the recent weakness in the market is linked to fears about AI changing traditional industries. Investors are worried that some old business models may not survive. Software companies, brokerages, and trucking firms were among the hardest hit last week. The selling was heavy enough to give the three main US indexes their worst weekly performance since mid November.
Last week, the S&P 500 and the Dow Jones Industrial Average each fell more than 1%. The Nasdaq Composite lost more than 2%. The Dow and the S&P 500 have now fallen in 4 of the last 5 weeks. The Nasdaq has dropped for 5 weeks in a row. That is its longest losing streak since 2022.
Some economists believe this is not full panic. They say money is simply moving from one sector to another. Investors may be shifting away from certain tech names rather than running away from the entire market.
There is also concern about new AI developments coming from China. Alibaba recently introduced its Qwen 3.5 AI model. The company says it can handle complex tasks on its own. US listed shares of Alibaba rose about 1% before the market opened, showing that not all AI news is negative.
Inflation is another big focus this week. The latest consumer price index came in softer than expected. That gave markets a little relief. Still, investors are not fully relaxed. They are now waiting for the personal consumption expenditure report due on Friday. This is the Federal Reserve’s preferred measure of inflation. The minutes from the Fed’s last meeting will also be released on Wednesday.
Traders are watching for clues about interest rates. According to CME’s FedWatch Tool, there is now a 52% chance of a 25 basis point rate cut in June. Just a week ago, that probability was around 49%. It is a small change, but it shows growing hope for easier policy. Speeches from Federal Reserve Governor Michael Barr and San Francisco Fed President Mary Daly later today could also influence expectations.
Company earnings are also driving individual stock moves. Palo Alto Networks is reporting results on Tuesday. DoorDash, Walmart, and Wayfair will report later this week. So far, more than 73% of S&P 500 companies have announced earnings this quarter. Around 74.5% have beaten analysts’ estimates. That is higher than the usual 67% beat rate.
Some stocks saw big jumps because of company specific news. Norwegian Cruise Line climbed about 6.4% after reports that activist investor Elliott built a stake of more than 10%. Zim Integrated Shipping surged roughly 35% after Germany’s Hapag Lloyd agreed to buy the company for 4.2 billion dollars. Masimo jumped about 34% after news that Danaher was close to a nearly 10 billion dollar deal to acquire it. Danaher shares, however, fell 6.8%.
Investors are also keeping an eye on Friday. The Supreme Court may issue a ruling related to President Donald Trump’s tariffs. That decision could add another layer of uncertainty to an already cautious market.