Traders work on the floor of the New York Stock Exchange during morning trading on Feb. 19, 2025.
Michael M. Santiago | Getty Images News | Getty Images
S&P 500 futures inched higher early Tuesday after the broad market index was unable to recover from last week’s sell-off, notching its third session in the red.
Futures tied to the S&P 500 rose 0.15% while the Nasdaq-100 futures traded around the flatline. Futures tied to the Dow Jones Industrial Average rose 71 points, or 0.16%.
During Monday’s regular trading, shares of key tech companies dragged down the S&P 500 and the Nasdaq Composite to session losses. Defense tech and artificial intelligence play Palantir extended last week’s decline by falling more than 10%, while Microsoft lost 1% on the heels of a TD Cowen report signaling that the company is slashing data center spending. Nvidia also shed 3% ahead of its quarterly results due Wednesday after the bell.
Monday’s decline among tech names also pulled the Nasdaq Composite into negative territory year to date.
“Investors in the market more broadly, they sort of almost want to believe that the AI trade is over. They’re looking for evidence [and] reasons to doubt,” Doug Clinton, a managing partner at Deepwater Asset Management, said on CNBC’s “Closing Bell” on Monday. “From our perspective, the AI trade is still real. I don’t think this boom is over. I still think we have two to four years to go.”
Along with Nvidia’s earnings this week, Wall Street is looking ahead to a batch of other key results, including Home Depot’s release before the opening bell on Tuesday.
On the economic front, investors are also turning their attention to the latest U.S. consumer confidence data due out at 10:00 a.m. ET Tuesday. Economists polled by Dow Jones are expecting the Conference Board’s consumer confidence index to show a reading of 102.3 for February, less than the previous month’s reading of 104.1.
The report comes ahead of a slew of other economic data releases later in the week, including January’s personal consumption expenditures price index reading Friday. The PCE is the Federal Reserve’s preferred inflation gauge.
