On Tuesday, U. S. stock futures displayed mixed results as chipmakers faced renewed pressure. The S&P 500 futures dipped 0.2%, while Nasdaq-100 futures fell 0.7%. Meanwhile, Dow Jones Industrial Average futures hovered near the flatline. Key players in the semiconductor sector, including Micron Technology, saw declines of over 2%. Seagate Technology, Intel, and Advanced Micro Devices also experienced losses of about 2% each.
The VanEck Semiconductor ETF (SMH) pulled back more than 1%, and CoreWeave shed over 4%. This downturn in tech sentiment followed a sharp drop of more than 30% in Korean AI firm Elice during its market debut, raising concerns about the sustainability of the AI trade amid growing debt and demand issues.
Despite these challenges, the S&P 500 managed a 0.4% gain in regular trading on Monday, with the Nasdaq Composite advancing over 1%. Nvidia and Tesla contributed to the rebound, with increases of 1.4% and 3.8%, respectively. Alphabet shares also rose by about 1%. This recovery came after a tumultuous week marked by fears of excessive borrowing for AI projects.
In other market movements, General Motors reported strong third-quarter earnings, surpassing Wall Street expectations. The automaker's results were bolstered by robust truck sales and growing subscription revenue. GM raised its free cash flow expectations and narrowed its 2026 full-year guidance. Despite these positive results, GM's stock fell roughly 7% in premarket trading.
Meanwhile, Northrop Grumman posted mixed third-quarter results, with earnings per share beating estimates but revenue slightly missing expectations. The defense contractor's stock gained more than 1%.
ABB CEO Morten Wierod expressed optimism about the continued growth of AI data centers, despite investor concerns over rising AI expenditures. ABB reported record third-quarter orders, driven by a significant increase in its data center segment.
Global Market Reactions
Asian markets closed lower on Tuesday, led by South Korea's Kospi, which dropped 3.73%. Japan's Nikkei 225 fell 1.3%, and Australia's S&P/ASX 200 slipped 0.33%. European stocks also opened lower, with the pan-European Stoxx 600 down 0.3% in early trading, driven by losses in the tech sector.
In the UK, wages excluding bonuses grew by 3.7% year-on-year in the three months to August, slightly above forecasts. This data precedes an anticipated interest rate hike by the Bank of England, which is expected to raise its base rate by 25 basis points to 4% next month.
French stocks faced further declines, with the CAC 40 index set to open lower following a 1.1% drop on Monday. Analysts attribute the poor performance to political volatility, social unrest, and higher government bond yields.
Oil prices inched higher as tensions in the Middle East escalated. Brent crude futures rose 0.14% to $109.70 per barrel, while U. S. West Texas Intermediate crude futures for November delivery gained 0.25% to $103.92 per barrel.
