U.S. equity futures traded in a narrow range on Tuesday as investors balanced concerns about artificial intelligence–related disruption with anticipation ahead of a busy slate of corporate earnings. Market sentiment was also influenced by the rollout of President Donald Trump’s new 10% global tariff regime following a Supreme Court ruling that overturned earlier emergency trade measures. Separately, Paramount Skydance (NASDAQ:PSKY) has reportedly increased its bid for Warner Bros Discovery (NASDAQ:WBD), while Home Depot (NYSE:HD) is set to publish its latest quarterly results.
Futures hold near unchanged levels
Futures linked to major U.S. benchmarks remained close to flat as traders prepared for upcoming earnings announcements, including results from AI leader Nvidia (NASDAQ:NVDA).
At 03:03 ET, Dow futures were higher by 47 points, or 0.1%, S&P 500 futures rose 10 points, or 0.1%, and Nasdaq 100 futures advanced 38 points, or 0.2%.
Wall Street’s primary indices declined in the previous session amid persistent anxiety over how rapidly advancing AI technologies could reshape multiple industries. Some analysts pointed to a recent Citrini Research report outlining a severe hypothetical scenario in which widespread AI adoption could trigger large-scale white-collar job losses, weaken consumer demand, increase credit defaults and ultimately push the economy into recession.
Citrini stressed that the analysis represented a “scenario, not a prediction,” though markets remained unsettled amid broader concerns about heavy spending by mega-cap technology firms on 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 said in a note.
Trump’s global tariffs begin
President Trump’s latest round of global tariffs came into force at midnight Tuesday at a 10% rate, following a Supreme Court ruling last week that struck down his previously imposed “reciprocal” duties.
The tariff level was communicated through the U.S. Customs and Border Protection messaging system and remains below the 15% rate Trump signalled after the court decision, which found his use of emergency economic powers to implement sweeping global surcharges unlawful.
Trump initially introduced a universal 10% tariff after the ruling before warning that the rate could rise to 15%. Bloomberg News reported that the White House is preparing a formal order to implement that increase.
The tariffs, introduced under Section 122 of the Trade Act of 1974, will remain in place for 150 days, after which Congress will determine whether they should continue.
Uncertainty persists around trade agreements negotiated prior to the court ruling. Responding to reports that some countries may reconsider existing arrangements, Trump cautioned partners via social media not to “play games.”
Paramount reportedly sweetens offer for Warner Bros Discovery
Paramount Skydance (NASDAQ:PSKY) has submitted a revised and improved proposal for Warner Bros Discovery (NASDAQ:WBD), according to Reuters, as it attempts to persuade the media group to abandon its agreement with Netflix (NASDAQ:NFLX).
Reuters, citing a source familiar with the discussions, reported that the updated bid improves on Paramount’s earlier $30-per-share proposal, which valued Warner Bros at approximately $108.4 billion. Warner Bros previously argued the offer undervalued the company and granted Paramount a seven-day deadline — ending February 23 — to submit a revised bid.
Netflix has separately agreed a deal worth $27.75 per share in cash, valuing the relevant Warner studios and streaming assets at roughly $82.7 billion.
Variety reported that Warner Bros is expected to review Paramount’s latest proposal while continuing to seek shareholder backing for the Netflix agreement.
Central to the takeover battle is control of Warner Bros’ valuable intellectual property portfolio, including franchises such as “Game of Thrones” and “Harry Potter.”
Home Depot earnings in focus
Home Depot (NYSE:HD) is scheduled to release quarterly earnings before the opening bell on Tuesday.
The home-improvement retailer previously issued cautious forecasts for fiscal 2026, pointing to modest comparable sales growth and profit expectations amid subdued demand for large-ticket renovation products.
During a December investor day, chief financial officer Richard McPhail warned that consumer caution tied to cost-of-living pressures is expected to persist, noting there has not yet been “a catalyst or an inflection in housing activity.”
Elevated home prices and slower hiring trends have contributed to uneven housing demand in the U.S., despite signs that interest rates and mortgage costs may be stabilising.
Home Depot expects comparable-store sales growth ranging from flat to 2% in fiscal 2026, while adjusted earnings per share are projected to increase between flat and 4%, both below LSEG forecasts cited by Reuters.
Oil prices hover near multi-month highs
Oil prices moved slightly higher, trading close to seven-month highs ahead of another round of 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 remain near levels last seen in early August 2025.
The United States and Iran are scheduled to hold a third round of nuclear talks in Geneva on Thursday, amid growing concerns about potential military escalation as Washington pushes for an end to Iran’s nuclear programme.
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