Dow, S&P 500, Nasdaq futures sink after tech sell-off, AMD slides after earnings
U.S. stock futures fell Tuesday night after a rough trading session that saw all three major averages close deep in the red.
Dow Jones Industrial Average futures (YM=F) fell 0.1%, while S&P 500 futures (ES=F) fell 0.3%. Nasdaq 100 futures (NQ=F) fell around 0.5% as AI chip giant AMD (AMD) saw its shares fall more than 3% as its fourth-quarter forecast beat estimates but still fell short.
During regular trading on Tuesday, the Nasdaq Composite (^IXIC) led a steep stock decline, falling over 2%. The pullback follows a sharp selloff in tech names, led by Palantir (PLTR), which fell nearly 8% despite high third-quarter expectations.
The stock’s high valuation has led some investors to question whether the AI-fueled rally has outpaced fundamentals. Fears of an AI-powered bubble are starting to mount, spurred by investor Michael Burry’s moves into both Palantir and Nvidia (NVDA). AMD’s lackluster earnings could further fuel this fire.
McDonald’s (MCD), Qualcomm (QCOM), Robinhood (HOOD) and Toyota (TM) are among the highlights in Wednesday’s earnings rankings.
On the data front, traders will look to the ADP special payroll report on Wednesday for updates on mortgage applications and ISM services activity, as well as clues on the labor market. The government shutdown continues to stall economic statements and is expected to be the longest shutdown in history through Wednesday. In the latest development, the Trump administration is warning travelers of “mass chaos” as authorities prepare to close airports.
President Trump’s tariffs, meanwhile, face a major test Wednesday when the Supreme Court hears arguments in a case challenging Trump’s legal authority to impose his most sweeping mandates. The Supreme Court’s final decision could have significant repercussions on the global economy.
LIVE 1 update
