U.S. stock futures climbed modestly Tuesday after a turbulent start to the week, offering a tentative reprieve from the volatility that has shaken the final week of February’s trading.
Dow Jones E-minis added 133 points, or 0.27%, boosted by a 4% jump in Home Depot (HD) after the home-improvement giant reported better-than-expected fourth-quarter results. S&P 500 futures rose 0.25%, while Nasdaq 100 futures gained 0.36%, as investors digested a mix of earnings, geopolitical risk, and AI-driven uncertainty.
⚡ Monday’s Selloff: AI Disruption, Tariffs, and Tech Losses
The previous session saw the Dow drop over 800 points, led by a sharp 13% decline in IBM shares, as fears mounted over artificial intelligence disrupting multiple industries. Software giants Microsoft, Salesforce, and CrowdStrike, along with cybersecurity and financial stocks, were particularly hard hit. The S&P 500 dipped 1%, slipping into negative territory for the year, while the Nasdaq Composite fell 1.1%.
Market strategist Warren Pies of 3Fourteen Research described Monday’s rotation as “unhealthy,” noting strong gains in consumer staples and energy contrasted with weakness in tech and financials.
“You cannot get out of this with tech and financials continuing to do this,” he warned. “For the market to resolve bullishly, it has to be tech-led.”
🌐 Trump’s Tariff Moves Keep Traders on Edge
The U.S. rolled out a 10% global tariff Tuesday, a temporary measure signed by President Donald Trump after the Supreme Court struck down his previous emergency levies. Trump has since threatened to raise the rate to 15%, although it is unclear when that increase might take effect.
Analysts say the immediate monetary impact may be modest, but the uncertainty over duration and scope is keeping volatility elevated.
🖥️ Tech Stocks Watching AI Events and Earnings
Investors are bracing for a series of high-profile events this week, starting with Anthropic’s AI showcase, expected to highlight new capabilities for its Claude AI. The anticipation of potential industry disruption contributed to Monday’s tech selloff.
Other major earnings to watch include:
Nvidia (NVDA) – after-market report Wednesday, closely followed due to AI spending trends
Salesforce (CRM) and Intuit (INTU) – software earnings that could influence sector sentiment
Megacap stocks rebounded slightly in premarket trading, with Microsoft and Meta Platforms (META) clawing back some losses from Monday. Home Depot and Keysight Technologies (KEYS) also posted strong premarket gains, while Hims & Hers Health (HIMS) fell after weaker-than-expected revenue guidance.
The S&P 500 software and services index has fallen almost 24% year-to-date, highlighting the sector’s vulnerability to AI disruption fears.
🏛️ Macro Risks Add to Market Jitters
Beyond tech, the week is shaping up to be heavy with macro news:
President Trump’s State of the Union address on Tuesday
Speeches by at least six Federal Reserve officials, as traders seek clues on interest rates and monetary policy
Continued monitoring of U.S.-Iran tensions and global tariff dynamics
Currently, the market expects the Federal Reserve to hold rates steady in March, with the next potential cut projected for June.
🔮 Investors Tread Carefully Ahead
Analysts recommend patience. Pies suggested that this week represents a consolidation phase:
“This has been a healthy pullback. The wise way to navigate is to wait and let the market definitively break the range.”
Until AI-related fears, tariff uncertainties, and earnings results clarify the outlook, traders are likely to continue weighing risk against potential tech-led upside, with volatility dominating the headlines as February closes on a turbulent note.