U.S. equity futures indicate a softer start on Tuesday, with markets likely to come under pressure following a volatile and mixed performance in the previous session.
Technology shares are expected to drive the decline, underscored by a 1.3% drop in Nasdaq 100 futures.
Companies tied to artificial intelligence infrastructure may face renewed selling after The Wall Street Journal reported that OpenAI failed to meet internal targets for both user growth and revenue.
According to sources familiar with the situation, the shortfall has raised concerns among some executives about whether the company can continue funding its large-scale data center investments.
Oracle (NYSE:ORCL), a key partner of OpenAI in AI infrastructure development, is down 6.5% in premarket trading.
Chipmakers are also under pressure, with Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM) all posting notable losses ahead of the open.
Geopolitical uncertainty is adding to the cautious mood, as signs suggest the Trump administration is unlikely to accept Iran’s proposal to reopen the Strait of Hormuz while delaying discussions on its nuclear program.
After strong gains on Friday, markets struggled to maintain momentum on Monday. Major indices fluctuated around the unchanged mark throughout the session before closing with only modest changes.
The Nasdaq gained 50.50 points, or 0.2%, to 24,887.10, while the S&P 500 added 8.83 points, or 0.1%, to 7,173.91, with both benchmarks reaching fresh record closing highs. The Dow Jones Industrial Average slipped 62.92 points, or 0.1%, to 49,167.79.
The lack of clear direction reflected investor hesitation amid ongoing uncertainty in the Middle East, particularly after U.S.-Iran negotiations stalled over the weekend.
As talks move into a more uncertain phase, reports suggest Iran has proposed reopening the Strait of Hormuz and ending the conflict, while postponing negotiations over its nuclear program.
Corporate earnings are expected to take center stage in the coming days, with five members of the “Magnificent Seven” set to report results this week.
Investors are also closely monitoring the Federal Reserve’s policy announcement scheduled for Wednesday.
While the Fed is widely expected to hold interest rates steady, its statement could provide further guidance on the outlook for monetary policy.
Sector moves on Monday were generally muted, mirroring the broader market’s lack of conviction.
Airline stocks were among the biggest decliners, with the NYSE Arca Airline Index falling 2.1%.
Gold-related shares also weakened, as the NYSE Arca Gold Bugs Index dropped 1.8%.
Telecom, networking and pharmaceutical stocks also came under pressure, while banking stocks moved higher.
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