FX.co ★ US Stock Futures Point to Muted Open

US equity futures experienced a slight downturn on Tuesday, driven by renewed apprehensions regarding the US labor market and persistent doubts about whether the elevated valuations of AI stocks are justified by their fundamentals. Futures tied to the S&P 500 and the Nasdaq 100 exhibited minor declines, whereas those linked to the Dow remained unchanged. According to data from ADP, an average of 11,250 jobs were lost each week throughout most of October, reinforcing the trend of negative labor data reported by other private entities. Concurrently, stocks involved in the escalating AI capital expenditures felt the strain of recent concerns about overvaluation, particularly following SoftBank's divestment of its entire $5.8 billion stake in Nvidia to reinvest in other AI endeavors. Nvidia futures dropped by 2%, while Oracle, Meta, and Tesla saw reductions exceeding 1.5%. Despite these challenges, the broader market displayed a mixed reaction, buoyed by cautious optimism that the US government shutdown could potentially conclude this week, as the House of Representatives prepares to vote on a temporary funding measure that has already received Senate approval.