U.S. equity futures slipped early Tuesday as traders positioned themselves for a wave of delayed economic releases. A wide set of reports—including retail sales and producer price data—will give investors fresh insight into the state of the economy, while Federal Reserve officials continue to debate the direction of interest rates. Meanwhile, Google (NASDAQ:GOOG) is said to be intensifying its effort to compete with Nvidia (NASDAQ:NVDA) in the high-stakes AI chip market, and Dell (NYSE:DELL) is preparing to unveil its latest quarterly results.
Futures Slip Ahead of Data
U.S. stock futures were modestly lower early Tuesday, signaling some caution as markets wait for key economic updates.
As of 02:35 ET, Dow futures eased by 42 points (0.1%), S&P 500 futures declined 7 points (0.1%), and Nasdaq 100 futures fell 46 points (0.2%).
Major indices had pushed higher on Monday, kicking off a holiday-shortened trading week on a positive note.
Optimism was supported by comments from several Federal Reserve officials that boosted hopes for a rate cut at the December meeting. Those expectations helped counter persistent worries about a potential bubble forming in the fast-growing artificial intelligence sector—made more concerning by rising leverage used to fund AI-related infrastructure.
Still, analysts at Vital Knowledge noted that this cautious mood has shown signs of “stabilizing.”
“Money isn’t exiting AI but instead shifting,” they said, pointing to renewed flows into Google and Broadcom (NASDAQ:AVGO) tied to Google’s new Gemini model and advances in AI-focused chips.
They added that, given this backdrop, “there’s a bit more comfort in a the prospect of a year-end rally,” though recent volatility remains top of mind.
Key U.S. Data Arrives After Shutdown Delay
Investors will now turn their attention to a packed U.S. economic calendar—fully active again after the end of an unprecedented federal government shutdown that delayed several indicators.
The prolonged closure left policymakers without timely data, complicating decisions related to investment, borrowing costs, and rate policy.
Tuesday’s releases will feature September readings on retail sales and producer prices. Consumer spending—responsible for over two-thirds of U.S. economic activity—remains a central focus, while inflation pressures appear stubborn.
However, because of the shutdown, the data reflect conditions from two months ago, and analysts caution that the economic picture may have shifted significantly since then.
Fed Officials Split on Rate Path
The murky economic landscape sets up a difficult policy choice for the Federal Reserve at its December meeting.
Officials remain divided on whether to trim rates for a third straight gathering or hold steady in the current 3.75%–4% range.
San Francisco Fed President Mary Daly and Governor Christopher Waller hinted Monday that they are inclined toward another cut, prioritizing support for a cooling labor market over persistent inflation concerns. As a result, odds of a 25-basis-point reduction have climbed.
Others at the Fed, however, warned about cutting rates without the benefit of fresh economic information and expressed caution about policy decisions beyond December.
According to The Wall Street Journal, the final decision is likely to rest with Chair Jerome Powell—and either option carries meaningful risks.
Google and Meta Explore Major TPU Deal
Google is escalating its challenge to Nvidia in the AI chip arena, and Meta Platforms (NASDAQ:META) may become one of its biggest customers, The Information reported Monday.
Google has long limited its custom tensor processing units (TPUs) to its own cloud infrastructure. But the report says the company is now offering to deploy TPUs directly inside customers’ data centers—a major shift in strategy.
Meta, which owns Facebook and Instagram, is reportedly in talks to spend billions integrating TPUs into its facilities starting in 2027. It also intends to rent TPU capacity from Google Cloud as soon as next year. Meta currently relies mainly on Nvidia GPUs to run its AI operations.
Alphabet shares traded higher in premarket activity on Tuesday, while Nvidia slipped more than 2%.
Dell Set to Announce Earnings
Dell Technologies will headline today’s corporate earnings lineup as the quarter draws to a close.
The company—whose customers include CoreWeave and Elon Musk’s AI company xAI—nearly doubled its long-term annual profit growth target in October, underscoring confidence that demand for its AI server infrastructure will continue accelerating.
Adjusted earnings per share are projected to grow at least 15% annually over the next four years, up from earlier estimates of about 8%. Annual revenue growth is now expected to fall between 7% and 9%, compared with prior guidance of 3% to 4%.
Surging investment in Dell’s servers has solidified its role as a key beneficiary of the AI boom, though analysts warn that intense competition and high manufacturing costs could pressure margins.
Chinese e-commerce group Alibaba and chipmaker Analog Devices are also slated to report before U.S. markets open.