U.S. stock futures edged lower on Tuesday, with sentiment weighed down by the ongoing federal government shutdown, which has dulled enthusiasm generated by recent dealmaking in the artificial intelligence sector. Attention is turning to Tesla’s potential unveiling of a lower-priced Model Y, Dell’s closely watched analyst day, and Constellation Brands’ better-than-expected earnings.
Futures drift lower
By 02:57 ET, Dow futures were down 101 points (0.2%), while S&P 500 futures slipped 9 points (0.1%) and Nasdaq 100 futures eased 28 points (0.1%).
Both the S&P 500 and the Nasdaq Composite closed at fresh record highs in the previous session, fueled largely by news of a deal between Advanced Micro Devices (NASDAQ:AMD) and OpenAI. Under the agreement, AMD will supply AI chips to OpenAI in exchange for a 10% stake in the ChatGPT developer — a partnership that could generate tens of billions in annual revenue. The news sent AMD shares surging 23.7%, while the Philadelphia Semiconductor Index climbed 2.9%.
Still, the broader economic outlook remains clouded. The week-long government shutdown has delayed key U.S. economic reports, making it harder for markets and Federal Reserve policymakers to gauge the path of interest rates. In the absence of official data, investors and officials are relying on private indicators to assess economic trends.
Some Fed-related releases will still appear despite the shutdown, including a New York Fed survey on consumer expectations due later today. Several Fed officials are also set to speak, though analysts say their comments may have limited impact without new data to reference.
Tesla may unveil a more affordable Model Y
Tesla (NASDAQ:TSLA) is widely expected to unveil a cheaper version of its Model Y SUV on Tuesday, according to multiple media reports.
Over the weekend, the company stirred anticipation among fans by posting two teaser videos on X, hinting at a major reveal on October 7. However, it remains unclear whether the company will host a live event or make a virtual announcement.
CEO Elon Musk had previously canceled plans for a $25,000 entry-level EV, Reuters reported, but sources now suggest the new vehicle will be a more “affordable” version of Tesla’s current lineup.
Tesla recently posted record quarterly sales, boosted by the expiration of U.S. EV tax credits, which effectively raised prices by $7,500. Analysts expect deliveries to slow later in 2025 as those incentives fade.
Dell’s analyst day in spotlight
Investors are also watching Dell Technologies (NYSE:DELL), which hosts an analyst day expected to shed more light on the ongoing AI hardware boom.
Back in August, Dell raised its full-year sales and profit forecasts, driven by surging demand for AI-optimized servers that rely on Nvidia chips.
While demand for such high-performance systems has soared, production costs remain a concern, with some analysts warning of margin pressure. Still, Dell has upgraded its forecast for AI server revenue in fiscal 2026 to $20 billion, up from $15 billion previously.
Constellation Brands reports smaller sales drop
Shares of Constellation Brands (NYSE:STZ) rose in after-hours trading after the beverage maker reported a smaller-than-expected decline in quarterly sales.
Beer demand remained firm despite worries that President Donald Trump’s immigration crackdown could hurt spending among Hispanic consumers, a key demographic for Corona and Modelo beers.
The company maintained its full-year outlook for sales and profits, which had been sharply cut in September due to the economic impact of Trump’s policies.
CEO Bill Newlands acknowledged that while the company’s beer segment outperformed rivals, the “socioeconomic environment” has been “challenging” and has “dampened consumer demand.”
Like competitors Molson Coors and Brown-Forman, Constellation continues to face pressure from higher U.S. aluminum tariffs, which have squeezed profit margins.
Gold hits record before easing
Gold prices briefly touched a new record near $4,000 per ounce, supported by strong safe-haven demand amid U.S. political gridlock and growing bets that the Federal Reserve will cut rates later this month.
Traders widely expect the Fed to reduce borrowing costs by 25 basis points at its October 28–29 meeting, according to the CME FedWatch Tool. The central bank resumed its easing cycle in September and has signaled that more rate cuts may follow before year-end.
This environment has favored non-yielding bullion, which typically performs well when interest rates are falling.
Additional support came from People’s Bank of China data showing continued gold purchases.
Spot gold dipped 0.3% to $3,950.58/oz after reaching $3,977.45/oz earlier in the session, while December gold futures eased 0.1% to $3,973.80/oz by 03:43 ET.
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