Stock futures pointed lower Tuesday after the three major indexes sold off to begin the week.
Futures associated with the blue-chip Dow Jones Industrial Average, benchmark S&P 500, and tech-heavy Nasdaq were down 0.5%, 0.4%, and 0.4%, respectively, a day after the indexes all declined roughly 1% as worries about AI-tied stock valuations continued.
AI darling Nvidia (NVDA), the world’s most valuable company, stock closed down nearly 2% yesterday as investors eagerly await its quarterly earnings report after the bell Wednesday. Nvidia shares were down a further 1% in premarket trading, while those of fellow AI favorite Oracle (ORCL) were down about 1.5% after a 1.3% decline Monday.
Also dragging indexes yesterday were shares of Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), and HP (HPQ), which closed down a respective 8.4%, 7%, and 6.8% after Morgan Stanley downgraded the stocks amid soaring memory chip prices. The three stocks were pointing slightly lower in premarket action.
Home Depot (HD) shares fell 3% before the bell after the home-improvement retailer reported disappointing third-quarter profit and cut its full-year outlook. Fellow retailers TJX (TJX), Lowe’s (LOW), and Target (TGT) are slated to report results Wednesday morning and Walmart (WMT) early Thursday.
Shares of Google parent Alphabet (GOOGL), which hit an all-time intraday high and finished up 3.1% yesterday after Warren Buffett’s Berkshire Hathaway (BRK.B) disclosed it had bought 17.8 million shares worth more than $4 billion in the third quarter, were up nearly 1% further before the bell.
Bitcoin was trading around $91,400 after dipping below $89,300 overnight, its lowest level since late April. The yield on the 10-year Treasury note ticked lower to 4.11% from Monday’s close at around 4.13%.
The U.S. dollar index, which tracks the performance of the dollar against a basket of foreign currencies, was little changed at 99.60. WTI crude futures, the U.S. oil benchmark, also were near flat at $59.90 per barrel. Gold futures declined 0.7% to $4,045 per ounce.