U.S. stock futures edged lower early Tuesday, as optimism over artificial intelligence breakthroughs was tempered by concerns surrounding the ongoing federal government shutdown. Investors are also looking ahead to several key corporate events, including Tesla’s anticipated unveiling of a cheaper Model Y, Dell’s analyst meeting, and Constellation Brands’ earnings report, which showed smaller-than-expected declines in sales.
Markets pull back slightly
By 02:57 ET, Dow futures were down 101 points (0.2%), S&P 500 futures fell 9 points (0.1%), and Nasdaq 100 futures slipped 28 points (0.1%).
The modest dip followed a strong Monday session, when both the S&P 500 and the Nasdaq Composite set new record highs. Gains were fueled by a blockbuster partnership between Advanced Micro Devices (NASDAQ:AMD) and OpenAI, under which AMD will supply AI chips in exchange for a 10% stake in the ChatGPT developer. Analysts estimate the deal could generate tens of billions of dollars in annual revenue, sending AMD shares soaring 23.7% and lifting the Philadelphia Semiconductor Index by 2.9%.
Still, a murky economic backdrop remains a key concern. The federal shutdown, now nearing a full week, has delayed the release of critical economic data, complicating the Federal Reserve’s assessment of monetary policy. Investors are turning to private-sector reports to gauge the health of the U.S. economy.
Some official releases will continue despite the disruption, including the New York Fed’s consumer expectations survey later today. Several Fed policymakers are also scheduled to speak this week, but analysts expect limited new insight without updated data to guide their remarks.
Tesla gears up for potential Model Y announcement
Tesla (NASDAQ:TSLA) could be preparing to announce a more affordable version of its Model Y SUV on Tuesday, according to media reports.
The company stoked anticipation over the weekend by sharing two teaser videos on X, hinting at an October 7 announcement. However, it’s still uncertain whether the reveal will be made at a live event or via an online update.
While CEO Elon Musk previously scrapped plans for a $25,000 entry-level EV, Reuters reports that the new model will be a more “affordable” version built on existing design and production platforms.
Tesla recently reported record-breaking quarterly sales, helped by the expiration of U.S. EV tax credits, which effectively raised prices by $7,500. Analysts, however, expect sales growth to cool later in 2025.
Dell’s AI outlook in focus
Dell Technologies (NYSE:DELL) will host an analyst day on Tuesday that could offer new insight into the rapidly evolving AI hardware market.
In August, Dell raised its revenue and profit forecasts, citing strong demand for its AI-optimized servers powered by Nvidia’s advanced chips. However, analysts have flagged concerns about rising production costs that could pressure profit margins.
Still, Dell said it now expects $20 billion in AI server revenue for fiscal 2026, up from a previous estimate of $15 billion. Key clients include xAI, the artificial intelligence venture founded by Elon Musk, and CoreWeave, a cloud computing startup.
Constellation Brands reports smaller-than-expected sales decline
Shares of Constellation Brands (NYSE:STZ) gained in after-hours trading after the company posted a less severe drop in quarterly sales than analysts had anticipated.
Beer sales held up well despite worries that President Donald Trump’s immigration crackdown could curb spending by Hispanic consumers, who make up a large portion of demand for Corona and Modelo beers.
Constellation reaffirmed its full-year guidance for sales and profit, which was sharply reduced in September due to policy uncertainty and shifting consumer behavior.
CEO Bill Newlands said the company’s beer division continued to outperform competitors, but the “socioeconomic environment” has been “challenging” and has “dampened consumer demand.”
Like industry peers Molson Coors and Brown-Forman, Constellation is also facing margin pressure from higher U.S. aluminum tariffs impacting packaging costs.
Gold sets new record before easing slightly
Gold briefly touched a new record high near $4,000 per ounce, as investors piled into safe-haven assets amid Washington’s political gridlock and expectations that the Federal Reserve will cut interest rates later this month.
According to the CME FedWatch Tool, markets are pricing in a 25-basis-point rate cut at the Fed’s October 28–29 meeting. The central bank restarted its easing cycle in September and hinted that additional cuts may come before year-end.
Falling rates have boosted appeal for non-yielding bullion, which typically performs well in low-interest environments.
Data showing continued gold purchases by the People’s Bank of China added further support.
By 03:43 ET, spot gold was down 0.3% to $3,950.58 per ounce, after hitting $3,977.45 earlier in the session, while December futures slipped 0.1% to $3,973.80 per ounce.
Constellation Brands stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.