U.S. stock index futures fell sharply on Tuesday, led by weakness in technology shares, following a mixed Wall Street session where optimism around artificial intelligence boosted major indexes.
As of 4:40 P.M. (GMT+7), Futures tied to the S&P 500 declined 1.06%, or 72.60 points, to 6,779.40 points, while contracts tracking the technology-heavy Nasdaq 100 slumped 1.41%, or 366.00 points, to 25,606.90 points. Dow Jones Industrial Average futures, which have less exposure to tech, eased by 0.81%, or 383.70 points, to 46,953.60 points.
The reversal comes after technology giants fueled Monday’s uptick: Amazon set a record close after revealing a partnership with OpenAI, helping the Nasdaq gain nearly 0.5% and lifting the S&P 500 by approximately 0.2%.
Despite surpassing third-quarter expectations, Palantir shares dropped more than 7% in premarket activity to $191.98 per share, with analysts cautioning that valuations for the AI-focused defense contractor appear stretched.
Robust third-quarter earnings and continued high investment in artificial intelligence by leading cloud firms have bolstered sentiment. However, the market’s reliance on the so-called “Magnificent Seven” tech leaders has produced inconsistencies reflected in broader benchmarks.
Investors look ahead to another busy stretch of earnings reports, with more than 100 companies due to deliver results this week. Highlights on Tuesday’s roster include AMD, Uber, Spotify, and SuperMicro.
Meanwhile, market participants remain watchful over developments in Washington, as the ongoing government shutdown delays crucial economic releases, including the nonfarm payrolls report originally due this week.
