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S&P and Nasdaq futures fall after declining market US stock futures displayed a mixed performance Tuesday night, as investors navigated a challenging session characterized by a sell-off in technology shares and cautious anticipation ahead of a busy earnings week. The Dow Jones Industrial Average futures edged up slightly by about 0.1%, while S&P 500 futures fell nearly 0.2%, and the tech-heavy Nasdaq 100 futures dropped nearly 0.4% in early trading.The stock market closing, Tuesday, saw broad declines in the major indices, with the S&P 500 down 1.2%, Nasdaq Composite falling 2%, and the Dow dropping 0.5%. This sell-off was driven largely by concerns over elevated valuations in the artificial intelligence (AI) sector following the sharp 8% drop in Palantir’s stock despite it surpassing third-quarter earnings expectations. Palantir’s shares trade at over 200 times projected earnings, fueling investor skepticism about the sustainability of the tech rally.Investor sentiment remained cautiously optimistic in the longer term, supported by robust spending on AI infrastructure, yet wary of near-term volatility tied to the uneven earnings landscape and geopolitical uncertainties such as the ongoing US government shutdown. The shutdown contributes to investors’ reliance on corporate earnings results to gauge market direction amid the lack of fresh economic indicators.The earnings calendar remains packed this week with important reports from companies such as Advanced Micro Devices (AMD), Uber, Spotify, Pfizer, and others, which will provide further clues on consumer and corporate spending trends.Live EventsMcDonald’s is set to release its third-quarter 2025 earnings on Wednesday, before the market opens, with analysts expecting earnings per share (EPS) of approximately $3.35 and revenue around $7.09 billion.October had marked a strong month for US stocks, with the S&P 500 posting approximately a 2.3% gain, the Nasdaq surging nearly 4.7% buoyed by AI and cloud computing optimism, and the Dow rising 2.5%, led by industrial and consumer discretionary stocks. Major tech players continued to influence market movements, highlighted by Amazon’s nearly 10% stock gain following strong cloud division performance tied to AI initiatives, and Nvidia’s milestone as the first company to reach a $5 trillion market valuation.However, Tuesday’s trading saw investor caution return as some high-growth tech stocks faltered. The declines sparked discussions on potential overvaluation in the AI space, with some analysts likening current enthusiasm to a bubble scenario. Market participants are closely monitoring earnings results and awaiting resolution of Washington’s government shutdown to clarify the Federal Reserve's policy outlook and economic trajectory.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onS&P futuresmcdonaldsnasdaqPalantirDow Jones Industrial Averagespotifyartificial intelligencegovernment shutdownUS stockNvidia’s (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onS&P futuresmcdonaldsnasdaqPalantirDow Jones Industrial Averagespotifyartificial intelligencegovernment shutdownUS stockNvidia’s(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123
