S&P ​500, Nasdaq, Dow Jones set for red opening at U.S. Stock Market as Wall Street investors worry over AI disruptions

S&P 500, Nasdaq, and Dow Jones are set for a tough Tuesday at Wall Street as U.S. stock index futures edged lower in the pre-market. S&P 500 futures were down by 0.42 per cent, Dow Jones futures were down by 0.20 per cent, and Nasdaq futures were down by 0.93 per cent ahead of the regular market schedule.

U.S. Stock Market is heading for an opening in red as worries about AI-driven disruption unsettled investors after the long weekend, while markets also focused on corporate earnings.

Concerns over artificial intelligence sparked a selloff in software firms, brokerages and trucking companies last week, causing Wall Street's three main indexes to log ‌their steepest weekly declines ⁠since ⁠mid-November.


Potential ​risks from Chinese AI players also added to the uncertainty. On Monday, Alibaba unveiled a new AI model, Qwen 3.5, designed to independently execute complex tasks. Its U.S.-listed shares rose 1 per cent in premarket trading on Tuesday.

Most ​U.S. tech stocks were lower on Tuesday, with Nvidia losing 1 per cent, ⁠while Microsoft ‌and Apple inched down 0.4 per cent each.

This week, the personal consumption expenditure report - the U.S. Federal ​Reserve's preferred inflation gauge - will be closely watched for insight into inflation ​and the potential impact on the central bank's rate-cut trajectory.

The dataset follows a cooler-than-expected consumer inflation reading last week that slightly raised bets on rate cuts this year.

Traders are pricing in a 25-basis-point reduction in June, with the odds at 52 per cent, compared with a close-to-49 per cent chance a week ago, according to CME's FedWatch Tool.

Corporate earnings will also be in focus, with Constellation Energy, eToro and Labcorp expected to report results ‌before the bell.

More than 73 per cent of S&P 500 companies reported earnings this quarter, of which 74.5 per cent posted results above analysts' estimates, compared to 67 per cent in a typical quarter, ​data from LSEG showed ​on Friday.

Markets await comments from ⁠Fed Governor Michael Barr and San Francisco President Mary Daly through the day.

Among other movers, Norwegian Cruise Line jumped 10 per cent in premarket trading after the Wall Street Journal reported activist investor Elliott has built a ​more than 10 per cent stake in the cruise operator.

U.S.-listed shares of Zim Integrated Shipping soared about 35 per cent after Germany's Hapag-LLoyd agreed to buy the company for $4.2 billion.

Masimo surged about 37 per cent after a report said Danaher was closing in on a nearly $10 billion deal to acquire the pulse-oximeter maker. Danaher lost 4.8 per cent. Investors will look for the Supreme Court's next opinion day on Friday, when a verdict on U.S. President Donald Trump's tariffs could be announced.