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Futures down: Dow 0.14%, S&P 500 0.34%, Nasdaq 0.77%
Feb 17 (Reuters) - U.S. stock index futures edged lower
on Tuesday as worries about AI-driven disruption unsettled
investors after the long weekend, while markets also focused on
corporate earnings.
Concerns over artificial intelligence sparked a selloff in
software firms, brokerages and trucking companies last week,
causing Wall Street's three main indexes to log their steepest
weekly declines since mid-November.
"AI adoption is an overall positive rather than a negative,
but it would change the business models of some industries. We
continue to see the AI disruption trade as a rotation theme,
rather than a risk-off," said Mohit Kumar, economist at
Jefferies.
Potential risks from Chinese AI players also added to the
uncertainty. On Monday, Alibaba unveiled a new AI model, Qwen
3.5, designed to independently execute complex tasks. Its
U.S.-listed shares rose 1% in premarket trading on
Tuesday.
Most U.S. tech stocks were lower on Tuesday, with Nvidia ( NVDA )
losing 1%, while Microsoft and Apple ( AAPL )
inched down 0.4% each.
At 05:46 a.m. ET, Dow E-minis fell 69 points, or
0.14%, S&P 500 E-minis lost 23.25 points, or 0.34%, and
Nasdaq 100 E-minis shed 191.75 points, or 0.77%.
This week, the personal consumption expenditure report - the
U.S. Federal Reserve's preferred inflation gauge - will be
closely watched for insight into inflation and the potential
impact on the central bank's rate-cut trajectory.
The dataset follows a cooler-than-expected consumer
inflation reading last week that slightly raised bets on rate
cuts this year.
Traders are pricing in a 25-basis-point reduction in June,
with the odds at 52%, compared with a close-to-49% chance a week
ago, according to CME's FedWatch Tool.
Corporate earnings will also be in focus, with Constellation
Energy ( CEG ), eToro and Labcorp ( LH ) expected to
report results before the bell.
More than 73% of S&P 500 companies reported earnings this
quarter, of which 74.5% posted results above analysts'
estimates, compared to 67% in a typical quarter, data from LSEG
showed on Friday.
Markets await comments from Fed Governor Michael Barr and
San Francisco President Mary Daly through the day.
Among other movers, Norwegian Cruise Line ( NCLH ) jumped
10% in premarket trading after the Wall Street Journal reported
activist investor Elliott has built a more than 10% stake in the
cruise operator.
U.S.-listed shares of Zim Integrated Shipping soared
about 35% after Germany's Hapag-LLoyd agreed to buy the company
for $4.2 billion.
Masimo ( MASI ) surged about 37% after a report said Danaher ( DHR )
was closing in on a nearly $10 billion deal to acquire
the pulse-oximeter maker. Danaher ( DHR ) lost 4.8%.
Investors will look for the Supreme Court's next opinion day
on Friday, when a verdict on U.S. President Donald Trump's
tariffs could be announced.