Stock futures indicated a positive start on Tuesday, following a significant drop in major indexes due to concerns about the implications of artificial intelligence on businesses and the uncertain landscape surrounding President Donald Trump’s tariff policies. The futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 increased by 0.3%, 0.2%, and 0.2%, respectively, as investors sought reassurance after the previous day’s downturn.
On Monday, the Dow plunged 1.7%, equating to a decline of over 820 points, while the Nasdaq fell by 1.1% and the S&P 500 declined by 1%. This drop was fueled by concerns regarding the trade outlook, especially after the Supreme Court recently nullified a significant portion of the tariffs Trump announced last April. In response, Trump called for a global tariff hike, initially proposing an increase to 10% before raising it to 15% shortly afterward.
Fears over AI’s potential disruption in various sectors also contributed to losses for notable tech companies. Shares of IBM, Datadog, CrowdStrike, and AppLovin slumped by 13%, 11%, 10%, and 9%, respectively. However, before the market opened on Tuesday, shares of IBM, Datadog, and CrowdStrike recovered slightly, while AppLovin experienced a minor decline.
Despite the prior losses, all but Tesla saw shares of the major tech companies commonly referred to as the Magnificent Seven start the day on a positive note. Nvidia, which is set to announce its earnings on Wednesday, saw a 0.5% increase in its shares.
Post-earnings reactions also varied, with Home Depot’s stock appreciating by 4%, while Hims & Hers Health experienced a 7% drop. Whirlpool faced an 8% decrease following its announcement to issue $800 million in new shares to help reduce debt. Conversely, FedEx shares edged slightly higher after the package delivery service filed a lawsuit against the U.S. government regarding Trump’s tariffs.
In cryptocurrency markets, Bitcoin fluctuated around $63,200, retreating from the higher levels of approximately $65,000 reached overnight. The yield on the 10-year Treasury remained steady below 4.04%, reflecting the ongoing stability in interest rates affecting consumer loans, including mortgages.
Gold futures experienced a modest decline of 0.7%, dropping to $5,190 an ounce, while silver futures enjoyed a rise of 1.4%, reaching $87.80 an ounce. Meanwhile, West Texas Intermediate crude oil futures remained stable at $66.30 a barrel.
The U.S. dollar index, which assesses the greenback’s value against various currencies, saw a 0.2% rise, reaching 97.86, reflecting investor demand for the currency amidst market fluctuations. As the markets adjust in response to recent developments, there remains a cautious optimism for potential recovery in the days ahead.