S&P and Dow Jones futures slip as AI fears weigh on markets

US stock index futures moved lower on Tuesday, as investors struggled to regain confidence following another losing week on Wall Street and continued uncertainty around artificial intelligence’s impact on business models.

Futures tied to the S&P 500 fell 0.29%, while Nasdaq 100 futures dropped 0.76%. 

Dow Jones Industrial Average futures declined 62 points, or about 0.13%. 

Markets will reopen on Tuesday after the New York Stock Exchange was closed Monday for Presidents’ Day.

Major technology names weighed on sentiment in premarket trading. 

Meta Platforms and Nvidia each lost around 0.8%, while Palantir Technologies fell 2%. 

Microsoft and Apple also edged down about 0.4%.

AI disruption fears unsettle markets

Wall Street’s recent weakness has been driven largely by concerns about artificial intelligence changing traditional industries. 

Software firms, brokerages, and trucking companies were among the sectors hit hardest last week, contributing to the steepest weekly declines for the three major US indexes since mid-November.

The S&P 500 and Dow Jones Industrial Average both fell more than 1% last week, while the Nasdaq Composite lost more than 2%. 

The Dow and S&P 500 have posted four losing weeks out of the last five, and the Nasdaq recorded its fifth straight negative week, its longest losing streak since 2022.

Economists say the technology shift is being interpreted more as sector rotation than broad risk aversion.

Potential risks from Chinese artificial intelligence developments added to the uncertainty.

Alibaba unveiled its Qwen 3.5 AI model designed to independently perform complex tasks, and its US-listed shares rose about 1% in premarket trading.

Inflation data and Fed outlook in focus

Despite a softer-than-expected consumer price index reading last week, markets remained cautious. 

Investors are now focused on the personal consumption expenditure report due Friday, the Federal Reserve’s preferred inflation gauge, along with Fed meeting minutes scheduled for Wednesday.

The cooler inflation data slightly increased expectations for monetary easing. 

According to CME’s FedWatch Tool, traders are pricing in a 25-basis-point rate cut in June with roughly 52% probability, compared with about 49% a week earlier.

Speeches from Federal Reserve Governor Michael Barr and San Francisco Fed President Mary Daly later in the day are also expected to provide additional policy guidance.

Earnings and corporate activity drive individual stocks

Corporate earnings will play a central role this week. 

Palo Alto Networks reports results Tuesday, with DoorDash, Walmart, and Wayfair set to follow. 

More than 73% of S&P 500 companies have reported earnings this quarter, and 74.5% have exceeded analysts’ estimates, above the typical 67% beat rate, according to LSEG data.

Other corporate developments generated notable moves in individual stocks. 

Norwegian Cruise Line rose about 6.4% after reports that activist investor Elliott had built a stake exceeding 10%. 

Shares of Zim Integrated Shipping jumped roughly 35% after Germany’s Hapag-Lloyd agreed to acquire the company for $4.2 billion. 

Masimo surged about 34% following reports that Danaher was nearing a nearly $10 billion acquisition deal, though Danaher shares fell 6.8%.

Investors will also watch Friday for a potential Supreme Court ruling related to US President Donald Trump’s tariffs, adding another layer of uncertainty to markets.