US stock futures dropped Tuesday night following a rough trading session that saw all three major averages close deeply in the red.
Dow Jones Industrial Average futures (YM=F) inched up 0.1%, while S&P 500 futures (ES=F) dropped 0.1%. Nasdaq 100 futures (NQ=F) sank around 0.3%, as AI chip giant AMD (AMD) saw its shares fall over 3% as its fourth quarter guidance beat estimates but nevertheless underwhelmed.
During regular trading on Tuesday, the Nasdaq Composite (^IXIC) led a steep stock slide, falling over 2%. The pullback followed a sharp selloff in tech names, led by Palantir (PLTR), which fell nearly 8% despite topping third-quarter expectations.
The stock’s lofty valuation has some investors questioning whether the AI-fueled rally has left fundamentals behind. Fears of an AI-fueled bubble are beginning to mount, spurred by investor Michael Burry’s puts against both Palantir and Nvidia (NVDA). AMD’s underwhelming earnings reveal could add more fuel to that fire.
In Wednesday’s earnings lineup, McDonald’s (MCD), Qualcomm (QCOM), Robinhood (HOOD), and Toyota (TM) are among the highlights.
On the data front, traders will look to the ADP private payrolls report on Wednesday for clues about the labor market, alongside updates on mortgage applications and ISM services activity. The government shutdown continues to stall economic releases, and it is poised to become the longest in history by Wednesday. In the latest development, the Trump administration is warning of “mass chaos” for travellers as officials look at closing airports.
Meanwhile, President Trump’s tariffs face a key test Wednesday when the Supreme Court hears arguments in a case questioning his legal authority to impose his most sweeping duties. The high court’s ultimate decision could have significant reverberations for the global economy.
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