U.S. equity futures were slightly lower early Tuesday as traders prepared for a heavy round of delayed economic reports. Retail sales and producer price numbers will offer long-awaited clarity on the state of the economy, while Federal Reserve officials continue to disagree over whether interest rates should be cut again in December. At the same time, Google is reportedly escalating its challenge to Nvidia in AI semiconductors, and Dell is set to deliver quarterly earnings after the closing bell.
Cautious Tone Across Futures
Wall Street futures signaled a softer open, reflecting investor caution as markets gear up for an important week.
By 02:35 ET, Dow futures were down 42 points, S&P 500 futures dipped modestly, and Nasdaq futures saw slightly deeper losses.
This comes after stocks rallied Monday, starting off a holiday-shortened week on stronger footing.
Fed officials helped fuel optimism for a potential December rate cut, easing fears tied to AI market frothiness and the boom in debt-financed infrastructure spending.
But analysts at Vital Knowledge noted that the mood appears to be settling, saying the recent negative narrative is “stabilizing.” They added that capital is rotating rather than leaving the sector entirely: “Money isn’t exiting AI but instead shifting,” particularly toward Google and Broadcom.
Backlogged Economic Data Returns
A long list of U.S. macro reports is due Tuesday, marking the return of a fully functional data calendar after the record-breaking federal shutdown.
The delays left policymakers with sizable information gaps, adding uncertainty to economic forecasting and rate planning.
Retail sales and PPI figures for September are among the most closely watched releases. With consumer spending accounting for most U.S. output and inflation proving stubborn, analysts warn the data may already be outdated thanks to the shutdown.
A Divided Fed Faces a Tough Decision
The Fed is wrestling with whether to cut rates once more or keep them unchanged at 3.75%–4%.
Mary Daly and Christopher Waller appeared to lean toward another reduction, emphasizing support for a cooling labor market.
But others want to wait for newer data before making a move, and concerns persist about policy beyond December.
Ultimately, according to The Wall Street Journal, Chair Jerome Powell is expected to make the final call.
Google and Meta Explore a Major TPU Partnership
Google is pushing harder into AI hardware, and Meta may become one of its most important customers, according to reporting from The Information.
The company is now pitching its TPUs for installation inside customers’ own facilities — a significant departure from its typical cloud-only model.
Meta is reportedly considering multi-billion-dollar spending to adopt TPUs beginning in 2027, while also planning to rent TPU capacity from Google Cloud next year.
Alphabet shares were higher premarket, while Nvidia slipped more than 2%.
Dell Takes Center Stage in Earnings
Dell Technologies will report after the close, rounding out a busy earnings season.
The company recently doubled its long-term profit-growth outlook on expectations of rising demand for AI-focused servers, projecting at least 15% annual EPS growth and 7%–9% annual revenue expansion.
Though Dell is benefiting from the AI boom, analysts remain cautious about margin pressure from intensifying competition and production costs.
Alibaba and Analog Devices will also post results before the open.
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