US equity futures moved higher on Tuesday, signalling a possible recovery on Wall Street after technology stocks suffered another round of heavy selling. Nasdaq 100 futures gained 0.8%, even as Apple shares fell sharply before the opening bell, while investors continued monitoring volatile crude oil prices and encouraging US manufacturing data.
The positive indication followed a difficult start to the week for major US benchmarks. The Nasdaq Composite and S&P 500 both finished Monday at three-month closing lows after surrendering early gains, while the Dow Jones Industrial Average managed a modest advance.
Market sentiment remained divided between concerns about artificial intelligence-related investments, changing expectations for oil prices and signs of resilience in the US economy.
Nasdaq Futures Point Higher Despite Apple Earnings Concerns
Nasdaq 100 futures advanced 0.8% ahead of Tuesday’s regular trading session, suggesting investors were prepared to revisit technology shares following recent declines.
The increase came despite a 4.4% premarket fall in Apple (NASDAQ:AAPL).
The technology giant reported higher quarterly sales and profits but disappointed investors with its gross margin outlook for the current quarter.
Apple expects its gross margin to come in slightly below Wall Street forecasts, citing increasing costs for components used in its products.
The warning raised concerns about the impact of higher input prices on profitability, particularly within the technology hardware industry.
Despite Apple’s weakness, the broader advance in futures suggested that some investors viewed the recent technology selloff as an opportunity to rebuild positions.
However, the previous session’s sharp reversal demonstrated that early buying interest may not necessarily translate into sustained gains.
Monday’s Selloff Pushes Nasdaq and S&P 500 to Three-Month Lows
US stocks opened higher on Monday as investors initially responded positively to falling oil prices and sought bargains following the previous week’s market decline.
The recovery proved short-lived, with selling pressure intensifying throughout the session.
The Nasdaq Composite dropped 272.68 points, or 1.1%, to 25,164.32.
The S&P 500 lost 38.67 points, equivalent to 0.5%, ending the session at 7,541.40.
Both benchmarks reached their lowest closing levels in three months, extending the weakness recorded during the preceding Thursday and Friday sessions.
Technology stocks were among the principal contributors to the decline, reflecting renewed uncertainty about the outlook for artificial intelligence.
The retreat highlighted investors’ continued sensitivity to earnings expectations and valuations across the technology sector.
Dow Jones Gains as Selected Blue-Chip Stocks Outperform
The Dow Jones Industrial Average avoided the broader market downturn, rising 213.67 points, or 0.4%, to finish at 51,983.98.
The index benefited from gains in several major companies outside the technology sector.
Sherwin-Williams (NYSE:SHW), Home Depot (NYSE:HD) and Walmart (NYSE:WMT) were among the stocks supporting the Dow’s positive performance.
Their advances helped offset weakness elsewhere in the market.
The contrasting performance of the Dow and Nasdaq illustrated how investors were responding differently to companies across various industries.
While technology shares continued to face selling pressure, selected consumer and industrial stocks attracted buying interest.
This divergence prevented the market downturn from extending uniformly across all major benchmarks.
Computer Hardware Stocks Lead Technology Sector Decline
The technology sector remained under significant pressure during Monday’s trading session.
Computer hardware companies experienced particularly steep losses, with the NYSE Arca Computer Hardware Index falling 5.5%.
The decline brought the index to a three-month closing low.
Semiconductor manufacturers, networking companies and software developers also recorded substantial losses.
The selling reflected persistent concerns about the outlook for artificial intelligence, including uncertainty surrounding future investment expectations and sector valuations.
The weakness contributed heavily to the Nasdaq’s decline and reinforced the cautious mood among technology investors.
Tuesday’s positive futures performance indicated that traders were considering another recovery attempt, although Apple’s premarket losses added uncertainty.
Crude Oil Collapse Weighs on Energy Shares
Energy companies faced substantial selling pressure on Monday after US crude oil futures plunged more than 7%.
The decline pushed oil prices well below $100 per barrel as investors became more optimistic about a potential diplomatic resolution to the conflict between the United States and Iran.
The sharp drop in crude prices weighed on energy producers and oilfield service companies.
The Philadelphia Oil Service Index fell 5.1%, while the NYSE Arca Oil Index declined 4.3%.
The movements reflected concerns about the financial impact of lower commodity prices on energy businesses.
At the same time, cheaper oil offered potential benefits for companies facing elevated transportation, manufacturing and other energy-related expenses.
Oil prices remained volatile on Tuesday, initially recovering before US crude futures moved decisively lower again during the morning.
Diplomatic Signals Raise Hopes of Easing Middle East Conflict
Developments involving Washington and Tehran remained central to movements in energy markets.
US Secretary of State Marco Rubio said over the weekend that President Donald Trump would prefer to resolve the conflict with Iran through diplomatic means.
Rubio emphasised that the United States retained the military capabilities required to respond if necessary but continued to favour a peaceful outcome.
“What the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful,” Rubio said.
“But we would prefer to do it peacefully.”
Separate discussions involving Iranian officials and Qatari mediators also encouraged expectations that negotiations could produce progress.
The possibility of reduced tensions contributed to a reassessment of supply risks in global oil markets.
That shift in expectations helped drive Monday’s substantial decline in crude prices.
Nevertheless, the renewed fluctuations on Tuesday demonstrated that energy markets remained highly sensitive to geopolitical developments.
US Manufacturing PMI Rises to 55.5 in October
A stronger-than-expected reading on US manufacturing activity provided a more encouraging signal about underlying economic conditions.
The Institute for Supply Management reported that its manufacturing Purchasing Managers’ Index rose to 55.5 in October.
The figure represented an increase from September’s reading of 54.5 and exceeded economists’ expectations of 54.6.
An index reading above 50 indicates expansion in manufacturing activity.
The latest result therefore suggested that the US manufacturing sector continued growing, with activity strengthening more than analysts had anticipated.
The improvement offered investors a positive economic indicator amid recent equity market volatility.
It also provided additional evidence for assessing the broader economic outlook as markets responded to developments in technology and energy.
Wall Street Faces Another Test of Buying Momentum
Tuesday’s higher futures suggested investors were preparing for another attempt to stabilise US equities after the recent decline.
Nasdaq 100 futures advanced 0.8%, despite Apple’s 4.4% premarket drop following its disappointing gross margin guidance.
The previous session’s performance highlighted the difficulty of sustaining a recovery, with the Nasdaq and S&P 500 reversing early gains to finish at three-month lows.
Meanwhile, energy prices continued to fluctuate as diplomatic developments influenced expectations surrounding the US-Iran conflict.
Stronger manufacturing activity provided a more positive economic signal, although technology sector weakness remained a significant influence on overall market sentiment.
Investors will be watching whether Tuesday’s early gains can be sustained and whether buying interest broadens beyond selected stocks.
The direction of technology shares and further changes in crude oil prices are likely to remain important factors in the near-term trading environment.
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