U.S. stock futures edged lower on Tuesday, struggling to extend the tech-driven rally fueled by rising confidence that the Federal Reserve will deliver a rate cut next month.
As of 5:16 P.M. (GMT+7), the Dow Jones Industrial Average futures ticked down by 0.07%, or 33.10 points, to 46,415.20 points, while S&P 500 futures slipped by 0.17%, or 11.60 points, to 6,693.50 points. Meanwhile, the Nasdaq 100, fresh off Monday’s strong session, fell by 0.29%, or 72.80 points, to 24,801.10 points.
The previous day saw the Nasdaq Composite surge 2.7%, as technology heavyweights rebounded sharply from recent losses. Despite this bounce, all major U.S. indexes remain on track for monthly declines as investors reconsider lofty valuations in artificial intelligence and other high-growth sectors.
Nvidia shares faced renewed selling pressure after The Information reported that Meta is in discussions to spend billions on Google’s AI chips. The increased competition from Alphabet in the AI datacenter market dragged Nvidia more than 3% lower to $176.45 per share in premarket trading—a move that weighed on the broader market, as Nvidia’s gains have been instrumental to the S&P 500’s strength this year.
The Federal Reserve remains at the center of investor focus. Market expectations for a 25-basis-point rate reduction at the Fed’s December meeting have climbed above 80%. Optimism for policy easing spiked following dovish signals from New York Fed President John Williams last week and fresh comments from Fed Governor Chris Waller on Monday.
Delayed U.S. economic indicators are also coming into the spotlight. Tuesday brings September producer price and retail sales data, as well as a November update on consumer confidence, offering further direction to market participants.
On the earnings schedule, investors await results from Alibaba, Kohl’s, and Best Buy during the shortened holiday trading week. U.S. markets will close Thursday for Thanksgiving, with Friday’s session set for an early 1 P.M. ET close.
