DOW Futures decline as a federal government shutdown curtails some of the enthusiasm generated by recent artificial intelligence transactions. Tesla is poised to unveil a more budget-friendly iteration of its Model Y SUV. Meanwhile, AI server group Dell is preparing for a significant analyst day, and brewer Constellation Brands has reported a quarterly sales decline that was less severe than anticipated, despite facing challenges from an extensive U.S. immigration enforcement initiative.

DOW Futures indicated a downward trend on Tuesday, as traders evaluated apprehensions regarding the persistent U.S. government shutdown, which has somewhat eclipsed the prevailing excitement surrounding artificial intelligence advancements. As of 02:57, the Dow futures contract experienced a decline of 101 points, representing a decrease of 0.2%. Meanwhile, S&P 500 futures fell by 9 points, or 0.1%, and Nasdaq 100 futures saw a reduction of 28 points, also reflecting a 0.1% drop. The benchmark S&P 500 and tech-heavy Nasdaq Composite both achieved new record closing highs in the previous session, largely driven by the announcement of a deal between semiconductor group Advanced Micro Devices and OpenAI. The agreement entails AMD supplying AI chips to OpenAI in return for a 10% equity stake in the ChatGPT developer, with projections indicating a potential influx of tens of billions of dollars in annual revenue. This development resulted in a 23.7% increase in AMD’s shares, while the broader Philadelphia Semiconductor Index rose by 2.9%. Yet the broader economic landscape continued to exhibit uncertainty. The ongoing federal government shutdown has significantly delayed the release of essential economic data, which may complicate the ability of financial markets and Federal Reserve policymakers to assess the future trajectory of U.S. interest rates. Instead, investors and Federal Reserve officials have been compelled to pursue alternative data, frequently sourced from private entities. Despite the shutdown, certain figures associated with the Federal Reserve will continue to be released, including a survey of consumer expectations from the New York Fed scheduled for later today. A group of central bank officials is scheduled to deliver remarks; however, in the absence of new data, analysts remain uncertain about the potential impact of their statements on the prevailing discourse regarding interest rates.

Media reports indicate that Tesla is expected to unveil a more budget-friendly variant of its widely favored Model Y sport-utility vehicle on Tuesday. During the weekend, the electric car manufacturer generated enthusiasm among its supporters by sharing two videos on X, which seemed to hint at an announcement scheduled for October 7. It remains uncertain whether an in-person event will take place, or if Tesla will opt for an alternative form of communication. CEO Elon Musk has previously abandoned plans to introduce a more affordable $25,000 electric vehicle, according to reports. However, the news agency indicated that, considering the existing manufacturing and design platforms, the potential vehicle this week is likely to be a more “affordable” option. Tesla recently achieved record quarterly sales, although this figure was enhanced by the expiration of EV tax credits in the U.S., which effectively increased prices in the country by $7,500. Sales are projected to slow down throughout the remainder of 2025.

Traders are expected to monitor an analyst day at Dell, which may offer further insights into the current dynamics of the AI boom. In August, Dell raised its annual revenue and profit projections, largely driven by the demand for its AI-optimized servers, which are supported by advanced chips produced by Nvidia. While demand has surged for AI servers from companies such as Dell and Super Micro Computer, which are equipped to manage substantial AI workloads, concerns have emerged regarding the elevated production costs associated with these technologies. Margins, consequently, may face pressure. However, Dell, whose clients include Musk’s AI startup xAI and CoreWeave, stated it now anticipates generating $20 billion in revenue from AI server shipments in its fiscal 2026 year — an increase from a previous forecast of $15 billion.

Constellation Brands experienced an increase in its share price during after-hours trading following the release of its second-quarter sales figures, which showed a decline that was not as severe as expected. The demand for beer remained robust, even amid concerns that U.S. President Donald Trump’s immigration policies may affect Constellation’s primary Hispanic consumer base. Constellation reaffirmed its full-year sales and profit projections, which were significantly reduced in September, partly due to economic uncertainty and the impact of Trump’s immigration policies. These factors have led some Latino customers, who have traditionally been strong purchasers of the company’s Corona and Modelo brands, to curtail their spending on social gatherings and dining out. CEO Bill Newlands noted that although the beer unit has surpassed its competitors, the “socioeconomic environment” has proven to be “challenging” and has “dampened consumer demand.” Meanwhile, akin to industry counterparts Molson Coors and Brown-Forman, Constellation has been striving to navigate a rise in U.S. import tariffs on aluminum cans, which poses a risk to profit margins.

Gold prices reached a new all-time high approaching $4,000 an ounce, driven by safe-haven demand amid the political stalemate in the U.S. and expectations of a potential rate cut later this month. Market participants largely anticipate that the Federal Reserve will reduce borrowing costs by 25 basis points during its forthcoming meeting on October 28-29. The central bank had previously initiated an easing cycle in September and signaled that additional drawdowns may occur before the year’s conclusion. This has contributed to enhancing the appeal of non-yielding bullion, which typically exhibits stronger performance in low-interest rate conditions. Data indicating a rise in gold purchases by the People’s Bank of China further bolstered the prices of the yellow metal. Spot gold decreased by 0.3% to $3,950.58 per ounce after reaching a high of $3,977.45 per ounce earlier in the session. Gold futures for December experienced a slight decline of 0.1%, settling at $3,973.80 per ounce as of 03:43.