FX.co ★ US Futures Sharply Lower

On Tuesday, U.S. futures experienced a significant decline, with S&P 500 contracts down 1.1%, Nasdaq 100 off by 1.4%, and Dow Jones futures falling over 400 points. This drop follows a mixed day in the markets on Monday, as enthusiasm from the recent AI-driven surge appeared to wane and investors processed a new round of corporate earnings. Contributing to the market's cautious sentiment, several prominent Wall Street CEOs, including those from Morgan Stanley and Goldman Sachs, cautioned at a Hong Kong summit that a substantial market correction could be on the horizon. Meanwhile, traders are adjusting their expectations for a Federal Reserve rate cut in December, influenced by a range of comments from Fed officials. In premarket activity, Palantir Technologies saw an almost 8% decline due to valuation concerns, notwithstanding its better-than-expected quarterly performance and an upbeat full-year revenue forecast. Vertex Pharmaceuticals also experienced a 3.8% drop following mixed results, and Nvidia's shares decreased by more than 2%, likely erasing their 2.2% gain from Monday.