FX.co ★ US Futures Edge Lower After Tech-Led Selloff

On Tuesday, US stock futures edged down following declines in major indices during the previous session, driven by escalating worries about AI-related companies amid sparse trading due to the holiday period. Market participants are also anticipating the release of the Federal Open Market Committee’s meeting minutes on Tuesday, followed by initial jobless claims and the Chicago Purchasing Managers' Index on Wednesday, leading up to the holiday. In Monday’s regular trading, US equities closed lower, with the Nasdaq 100 declining by 0.3% and the Dow retreating by 0.4% from their record highs on Friday. The drop was attributed to concerns over potentially inflated valuations of AI-centric companies, dampening investor sentiment. Notably, heavyweight stocks such as Nvidia and Tesla led the downturn, falling by 1.2% and 3.3%, respectively. Additionally, Oracle and Palantir saw declines of 1.3% and 2.4%, respectively, as the market continued to scrutinize whether substantial AI-related capital expenditures by software and data-center firms would yield the anticipated returns.