Lead
Stock futures opened lower on Tuesday as U.S. markets tried to steady after a second consecutive weekly decline. S&P 500 futures slipped about 0.3%, Nasdaq 100 futures gave up roughly 0.7% and Dow futures fell 46 points (about 0.1%). The selling pressure followed a holiday-shortened week in which the S&P 500 and Dow each lost more than 1% and the Nasdaq declined over 2%. Investors are parsing mixed inflation data and watching central bank signals as earnings and key economic reports loom.
Key takeaways
- S&P 500 futures were down ~0.3% in early trade; Nasdaq 100 futures were off ~0.7% and Dow futures fell 46 points (about 0.1%).
- Meta Platforms and Nvidia each slipped around 1% in premarket trading; Palantir fell about 1.8%.
- The S&P 500 recorded its second straight weekly loss; both the S&P and Dow lost more than 1% last week while the Nasdaq declined over 2%.
- The Dow and S&P logged their fourth losing week in five; the Nasdaq posted its fifth consecutive negative week, its longest streak since 2022.
- January headline CPI came in softer than economists polled by Dow Jones expected; the personal consumption expenditures (PCE) report is due Friday and Fed minutes are due Wednesday.
- Tech-heavy ETFs weakened in the premarket: XLK fell nearly 1%, with Autodesk and Teledyne each down more than 3%.
- Corporate earnings to watch this week include Palo Alto Networks (after the bell Tuesday), plus DoorDash, Walmart and Wayfair later in the week.
Background
U.S. equity benchmarks entered the week with recent momentum impaired: the S&P 500 and Dow each finished the prior week down more than 1%, and the Nasdaq posted a steeper drop of over 2%. That pattern has produced multiple weekly losses across indices, reflecting increased caution among investors after a long tech-led advance.
Market participants point to growing worries about how artificial intelligence-driven disruption could affect incumbents outside of pure software and semiconductor firms. Sectors such as real estate, trucking and parts of financial services have been singled out by traders and analysts as susceptible to AI-driven change, prompting more selective selling in names perceived as exposed.
Main event
On Tuesday morning, futures tied to major U.S. indices were trading lower: S&P 500 futures down roughly 0.3%, Nasdaq 100 futures down about 0.7% and Dow futures off 46 points (0.1%). The New York Stock Exchange had been closed Monday for Presidents’ Day, concentrating reactions into a shorter trading window.
Large-cap technology names were notable contributors to the premarket weakness. Meta Platforms and Nvidia each pulled back around 1%, while Palantir declined about 1.8%. The State Street Technology Select Sector SPDR ETF (XLK) was near a 1% drop, with individual components Autodesk and Teledyne off more than 3% each.
Investors continued to weigh recent inflation data: headline consumer price index figures for January were softer than Dow Jones economists had expected, but many market participants are waiting for the Bureau of Economic Analysis’s PCE inflation reading on Friday for a fuller picture of price pressures and how the Federal Reserve might respond.
Analysis & implications
Traders and strategists say market moves this week reflect a mix of event risk and sector rotation rather than a broad collapse in fundamentals. With the S&P roughly flat year-to-date, investors are sensitive to headlines: an incremental change in outlook for AI adoption or a surprise in inflation data can drive outsized flows into and out of expensive growth names.
Daniel Skelly of Morgan Stanley described the recent pattern as a shift in focus toward companies perceived as most exposed to AI-related disruption, which has amplified volatility in affected sectors. That dynamic helps explain why certain tech and industrial names have experienced sharper declines than the broader market indices might suggest.
Policy and data timing intensify the near-term stakes. Fed meeting minutes due Wednesday could clarify officials’ assessment of inflation and labor conditions, while Friday’s PCE report is the Fed’s preferred inflation gauge. Either release could alter rate expectations and, by extension, equity valuations—especially for long-duration tech stocks.
Comparison & data
| Index | Last week change |
|---|---|
| S&P 500 | Down >1% |
| Dow Jones Industrial Average | Down >1% |
| Nasdaq Composite | Down >2% (5th straight weekly loss) |
Those weekly moves underline a recent cooling in momentum, especially for technology names. The Nasdaq’s five-week losing streak is the longest since 2022 and signals concentrated selling pressure in growth and tech exposures relative to value-oriented parts of the market.
Reactions & quotes
“The AI disruption vigilantes were at it again … with new targets,”
Daniel Skelly, Morgan Stanley (wealth management)
Skelly framed recent flows as a re-rating tied to perceived AI risk, a theme reflected across multiple sectors rather than confined to chipmakers or pure software firms.
“Stock futures were little changed shortly after 6 p.m. ET,”
Alex Harring, CNBC reporting
CNBC coverage noted episodic shifts in futures through Monday evening, underscoring how after-hours sentiment and headlines feed into premarket pricing.
Unconfirmed
- Whether the recent AI-focused selling will persist through earnings season is not yet clear; current evidence points to selective rather than broad-based liquidation.
- It is not confirmed that the softer January CPI will materially change the Fed’s policy path—markets are awaiting the PCE reading and Fed minutes for clearer guidance.
Bottom line
Equity futures opened lower as markets digested a second straight weekly decline in major U.S. indexes and concentrated selling in tech-related names. Investors are balancing softer-than-expected headline CPI against the risk that AI-driven disruption could accelerate re-pricing in several industries.
Key near-term catalysts include Wednesday’s Federal Reserve meeting minutes and Friday’s PCE inflation report; both could swing sentiment and volatility depending on how they shift rate expectations. In the meantime, traders are likely to remain discerning about names most exposed to AI disruption and those that stand to benefit from resilient consumer demand.