*

Futures down: Dow 0.19%, S&P 500 0.42%, Nasdaq 0.86%

*

Warner Bros rejects Paramount's revised offer; both stocks

up

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Norwegian Cruise Line ( NCLH ) jumps on report Elliott has built a

stake

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Masimo ( MASI ) surges after Danaher's ( DHR ) $9.9 bln acquisition deal

(Updates before markets open)

By Purvi Agarwal and Twesha Dikshit

Feb 17 (Reuters) - U.S. stock futures pointed to a lower

open on Tuesday after the long ​weekend as worries about

AI-triggered disruptions rattled market confidence and investors

focused on ‌developments in nuclear talks between the United

States and Iran.

Concerns over artificial intelligence impacting business

models sparked a selloff in software firms, brokerages and

trucking companies the previous ⁠week, causing Wall Street's

three main indexes to log their steepest weekly decline since

mid-November.

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.

Most U.S. tech stocks were lower on the day, with Nvidia ( NVDA )

losing 1.1% and Microsoft ( MSFT ) down 0.7%.

"The Alibaba AI product is one of the variables ​weighing

on markets today and that's a part of a much ‌larger dynamic

that's at play here," said Stash Graham, managing director and

CIO at Graham Capital Wealth Management.

"You are seeing a rebalance... for the markets to take a

breather off such a strong ​year last year; it's natural."

Iran's supreme leader said U.S. ​attempts to depose ‌his

government would fail, as the two nations started indirect talks

in Geneva over a long-running nuclear dispute.

At 08:36 a.m. ET, Dow E-minis shed 95 points, or

0.19%, S&P 500 E-minis were down 29 points, or ⁠0.42%,

and Nasdaq 100 E-minis fell 212.75 points, or 0.86%.

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 could impact the

central bank's rate-cut trajectory.

The dataset follows a cooler-than-expected consumer

inflation reading last week that slightly raised bets on

interest-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 are ‌in the final lap of the earnings

season. Of the over 73% of S&P ‌500 companies that have reported

earnings this quarter, 74.5% posted results above analysts'

estimates compared to 67% in a typical quarter, ⁠LSEG data on

Friday showed.

Markets await comments from Fed Governor Michael Barr and

San Francisco President Mary Daly later in the day.

Warner Bros rejected Paramount's revised

takeover bid, giving the studio a week to negotiate a better

deal. The companies rose 2.3% and 3.8%, respectively.

In other movers, Norwegian Cruise Line ( NCLH ) jumped 6% 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.

Fiserv's ( FISV ) ​shares gained almost 3.6% after WSJ

reported activist investor Jana Partners has taken a stake in

the payments company.

Masimo ( MASI ) surged about 35% after Danaher ( DHR ) said

it would acquire the pulse-oximeter maker for $9.9 billion,

including debt. Danaher ( DHR ) lost 6%.

On Friday, investors will track ​the U.S. Supreme Court's

next opinion day, when a ‌verdict on President Donald Trump's

trade tariffs could be announced.