Futures linked to the primary stock indices are experiencing a slight decline, as market participants observe a broad sell-off in equities to commence the trading week. Equities, gold, and Bitcoin faced challenges amid concerns regarding the durability of the excitement surrounding artificial intelligence, as the leading indices fell beneath a crucial benchmark utilized to evaluate prospective performance. Home Depot is scheduled to report, offering new perspectives on U.S. consumer spending trends, while Microsoft is poised to commence a highly scrutinized developers conference, with a focus on the tech giant’s aspirations in artificial intelligence.

Dow futures indicated a downward trajectory on Tuesday, suggesting a continuation of the significant selloff observed in the previous session. As of 03:12, the Dow futures contract experienced a decline of 146 points, representing a decrease of 0.3%. Additionally, futures fell by 28 points, equivalent to a 0.4% drop, while Nasdaq 100 futures saw a reduction of 124 points, or 0.5%. On Monday, all three of the primary U.S. averages declined beneath their 50-day moving averages, a key indicator of the intermediate-term direction of equities. The rate of losses accelerated during afternoon trading, with technology shares featuring prominently among the largest decliners on Monday. In particular, shares of Nvidia, the artificial intelligence darling set to unveil crucial quarterly earnings later this week, declined by 1.9%, exerting pressure on peers such as Advanced Micro Devices and Super Micro Computer. Analysts characterized investors as “jittery” and “nervous,” particularly following a $12 billion bond sale by AI hyperscaler Amazon, which heightened concerns that escalating expenditures on data centers are increasingly supported by debt rather than equity and cash flow. The concerns were sufficient to dampen sentiment, despite the fact that shares of Google-parent Alphabet reached a new peak following a recent investment from Warren Buffett’s Berkshire Hathaway.

Despite the declines, U.S. equities experienced a subdued recovery just prior to the closing bell following Federal Reserve Governor Christopher Waller’s advocacy for interest rate cuts at the central bank’s December meeting. Waller indicated that the latest private-sector hiring figures—sought by the Fed during a period of unavailability of official economic indicators due to an unprecedented federal government shutdown—pointed to employment growth that was approaching “stall speed” in September and October. He stated that another quarter-point rate reduction at the Fed’s meeting next month, its final one of 2025, will “provide additional insurance against an acceleration” in the cooling of the jobs picture. The outcome of the forthcoming meeting remains highly uncertain. Other Fed officials have cautioned against reducing rates until more current economic data is available and provides clearer signals that the labor market is deteriorating.

Home Depot is poised to lead today’s corporate earnings announcements, initiating a series of retail results this week that analysts anticipate will provide insights into the condition of the American consumer. The home improvement chain has experienced a decline in its shares of over 8% in the last month, which may reflect a degree of investor apprehension regarding the company’s short-term outlook. In conjunction with a series of disappointing returns from various firms associated with the housing sector in recent weeks, the retail industry at large has been contending with pervasive economic uncertainty that has cast a shadow over the prospects for consumer spending, especially regarding significant purchases such as home renovations and installations. The costs of raw materials for products like hardware and lighting have increased, influenced by President Donald Trump’s extensive import tariffs. Home Depot, along with its competitor Lowe’s, has been compelled to transfer a greater share of these costs to consumers. However, analysts expect that this challenge may be alleviated by a recent trade truce between President Trump and Chinese President Xi Jinping. Concurrently, analysts have indicated that the Federal Reserve’s interest rate cuts may stimulate demand among homeowners who have delayed do-it-yourself projects due to the increased financing costs associated with higher rates. Home Depot is projected to report a 1.5% increase in third-quarter comparable sales, rebounding from a 1.3% decline observed in the previous year, as per data.

Microsoft is set to commence its annual developer conference in San Francisco, as market participants anticipate further insights from the software behemoth regarding its strategies for swift data center expansion to satisfy the burgeoning demand for AI computing capabilities. Last week, reports says that the company is now aiming to construct a cutting-edge pair of two-floor AI “super factories” in Georgia. The expansion represents Microsoft’s initiative to double its overall data-center footprint within the next two years, as per reports, noting that the site will facilitate the training of some of Microsoft’s proprietary AI models. In its fiscal first quarter, Microsoft allocated more than $34 billion towards capital expenditures and signaled an intention to increase its investments in infrastructure. The announcement forms part of a broader initiative by major technology firms, collectively aiming to invest $400 billion in artificial intelligence within the current year. The surge in expenditures is driven by these firms’ ambition to solidify their standing in the competition to leverage and capitalize on emerging technology.

On Tuesday, Bitcoin experienced a brief decline, falling below the $91,000 threshold, marking a significant phase in its ongoing downturn that poses risks to other digital assets. The token has relinquished all gains accrued in 2025 and is currently trading more than 25% below the record peak achieved just over a month ago. Concerns regarding the broader economic landscape, particularly the ambiguity surrounding the American economy and the direction of Federal Reserve interest rate policy, have diminished Bitcoin’s allure, analysts have noted. Bitcoin spot exchange-traded funds are experiencing increased outflows, as investors liquidate positions based on anticipations of more accommodative monetary policies.