U.S. equity futures traded cautiously on Tuesday as investors weighed concerns over artificial intelligence–driven disruption while preparing for a busy week of corporate earnings. Sentiment was also shaped by the implementation of President Donald Trump’s new 10% global tariffs following a Supreme Court ruling that invalidated earlier emergency trade measures. Meanwhile, Paramount Skydance (NASDAQ:PSKY) has reportedly raised its takeover bid for Warner Bros Discovery (NASDAQ:WBD), and Home Depot (NYSE:HD) is set to release quarterly results later in the day.
Futures trade cautiously
Futures tied to major U.S. indices hovered close to unchanged levels as markets awaited earnings from several major companies, including AI heavyweight Nvidia (NASDAQ:NVDA).
As of 03:03 ET, Dow futures were up 47 points, or 0.1%, S&P 500 futures gained 10 points, or 0.1%, and Nasdaq 100 futures rose 38 points, or 0.2%.
Wall Street’s main indices declined in the previous session amid persistent concerns that emerging AI models could disrupt multiple industries. Analysts noted that the latest market weakness followed a report from Citrini Research outlining a severe hypothetical scenario in which AI adoption could trigger widespread white-collar job losses, weaken consumer spending, increase loan defaults and ultimately push the economy into contraction.
Citrini emphasised that the analysis represented a “scenario, not a prediction,” but this clarification did little to calm investors already worried about pressure on mega-cap technology companies investing heavily in AI infrastructure.
“As has been the case for weeks, AI is clearly a net negative for the equity market as hyperscalers get weighed down [free cash flow] fears while disruption worries eviscerate software and several other sectors,” analysts at Vital Knowledge wrote in a note.
Trump’s 10% tariffs take effect
President Trump’s latest global trade tariffs came into force at midnight Tuesday at a 10% rate after a Supreme Court decision last week struck down his so-called “reciprocal” tariffs.
The new rate was communicated through the U.S. Customs and Border Protection messaging system and remains below the 15% level Trump had suggested following the ruling, which determined that his use of emergency economic powers to impose broad global surcharges was unlawful.
Trump initially reinstated a universal 10% tariff following the decision and later threatened to raise the rate to 15%. According to Bloomberg News, the White House is now working toward issuing a formal order to increase tariffs to that higher level.
These tariffs, introduced under Section 122 of the Trade Act of 1974, are scheduled to remain in place for 150 days, after which Congress will decide whether to extend or modify them.
Uncertainty continues to surround the broader trade outlook, particularly regarding agreements negotiated before the court ruling. Responding to reports that some countries were reconsidering existing deals, Trump warned trading partners via social media not to “play games.”
Paramount reportedly raises bid for Warner Bros Discovery
Paramount Skydance (NASDAQ:PSKY) has submitted an improved offer for Warner Bros Discovery (NASDAQ:WBD), according to a Reuters report, as it attempts to persuade the media group to abandon its agreement with Netflix (NASDAQ:NFLX).
Reuters, citing a source familiar with the discussions, said the revised proposal improves upon Paramount’s earlier $30-per-share offer, which valued Warner Bros at approximately $108.4 billion. Warner Bros had previously argued that the initial bid undervalued the company and granted Paramount a seven-day window — ending February 23 — to present an updated proposal.
Netflix has separately agreed a deal valued at $27.75 per share in cash, equivalent to roughly $82.7 billion, covering Warner’s studios and streaming assets.
Variety reported that Warner Bros is expected to review Paramount’s revised offer even as management continues to encourage shareholders to support the Netflix agreement.
Control of Warner Bros’ intellectual property portfolio — including major franchises such as “Game of Thrones” and “Harry Potter” — remains central to the takeover contest.
Home Depot earnings due
Home Depot (NYSE:HD) is scheduled to publish its latest quarterly results before the opening bell on Tuesday.
The home-improvement retailer previously issued cautious guidance for fiscal 2026, forecasting modest comparable sales growth and profit as demand for high-value renovation items remains subdued.
During an investor day in December, chief financial officer Richard McPhail warned that consumer caution linked to cost-of-living pressures is expected to persist, noting there has not been “a catalyst or an inflection in housing activity.”
High property prices and subdued hiring trends have contributed to uneven housing demand in the United States, despite signs of easing interest and mortgage rates.
The company expects same-store sales growth in a range between flat and 2% for fiscal 2026, while adjusted earnings per share are projected to rise between flat and 4%, both below LSEG forecasts cited by Reuters.
Oil prices approach seven-month highs
Oil prices moved higher, trading near seven-month highs ahead of renewed nuclear negotiations between the United States and Iran later this week.
Brent crude futures rose 0.2% to $71.28 per barrel, while U.S. West Texas Intermediate crude gained 0.3% to $66.51 per barrel. Both benchmarks are currently trading near levels last seen in early August 2025.
The United States and Iran are expected to hold a third round of nuclear talks in Geneva on Thursday, amid increasing concerns about potential military escalation as Washington pushes for the termination of Iran’s nuclear programme.
Warner Brothers Discovery stock price