U.S. stock futures point to a weaker start on Tuesday, suggesting equities could come under pressure following a mixed and volatile session the day before.
Technology shares are expected to lead declines, highlighted by a 1.3% drop in Nasdaq 100 futures.
Stocks linked to artificial intelligence infrastructure may face selling pressure after The Wall Street Journal reported that OpenAI recently failed to meet its internal targets for both user growth and revenue.
According to sources cited in the report, the shortfall has sparked concern among some executives about whether the company can sustain its heavy investment in data centers.
Oracle (NYSE:ORCL), which has a long-term partnership with OpenAI focused on AI infrastructure, is falling 6.5% in premarket trading.
Semiconductor names are also under pressure, with Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM) all posting notable premarket declines.
Geopolitical tensions may further weigh on sentiment, as indications suggest the Trump administration is unlikely to accept Iran’s proposal to reopen the Strait of Hormuz while postponing discussions on its nuclear program.
Following strong gains last Friday, markets delivered a subdued performance on Monday. Major indices fluctuated around the flatline throughout the session before finishing with little overall movement.
The Nasdaq rose 50.50 points, or 0.2%, to 24,887.10, and the S&P 500 edged up 8.83 points, or 0.1%, to 7,173.91—both reaching fresh record closing highs. Meanwhile, the Dow slipped 62.92 points, or 0.1%, to 49,167.79.
The lack of clear direction reflected investor caution amid uncertainty surrounding developments in the Middle East, particularly after U.S.-Iran talks stalled over the weekend.
As negotiations enter a more uncertain phase, reports indicate Iran has proposed reopening the Strait of Hormuz and ending the conflict, while delaying talks on its nuclear program.
Corporate earnings are likely to take center stage in the coming days, with five of the “Magnificent Seven” companies scheduled to release results this week.
Investors are also closely watching the Federal Reserve’s policy decision due on Wednesday.
While the Fed is widely expected to keep rates unchanged, its accompanying statement may offer insights into the future path of monetary policy.
Sector performance on Monday was generally muted, mirroring the broader market’s lack of momentum.
Airline stocks were among the biggest decliners, with the NYSE Arca Airline Index falling 2.1%.
Gold-related shares also showed weakness, as the NYSE Arca Gold Bugs Index dropped 1.8%.
Telecom, networking and pharmaceutical stocks moved lower as well, while banking shares posted gains.