US stock market today: The US stock futures are hinting at a tepid start for the Wall Street on Tuesday, February 17, as trading resumes following a stock market holiday on account of Presidents’ Day.
The futures of tech-heavy Nasdaq 100 index retreated 0.80%, while S&P 500 futures declined lost 0.32% and those of the Dow Jones were lower by 0.13%.
Nasdaq had declined on Friday as well, shedding 0.22%, as technology and communication services stocks declined amid ongoing worries about disruption from artificial intelligence (AI). Meanwhile, the S&P 500 and Dow Jones had eked out gains.
What’s weighing on US stock market mood?
Three major concerns are weighing on the US stock market futures: AI-led disruptions, mounting tensions in the Middle East and jobs data that could give clues on US Federal Reserve’s interest rate path.
- AI fears linger
A tepid start for Nasdaq signals that investors are likely to keep selling artificial intelligence heavyweights amid concerns around swelling AI budgets. Investors are also wary of the impact of these AI models on industries outside the tech sector.
According to a Reuters report, a monthly Bank of America survey showed global investors were increasingly worried that companies are over-investing.
- Iran-US talks in focus
Meanwhile, the US markets also remained cautious amid geopolitical uncertainties. Investors are choosing to stay on the sidelines ahead of the US-Iran and Ukraine negotiations this week.
US President Donald Trump threatened to strike the Islamic Republic unless it agrees to a deal curbing Tehran’s nuclear program in exchange for sanctions relief, as per a Bloomberg report. He’s mobilised warships and fighter jets near Iran in response to a recent deadly crackdown by the regime there following mass protests, the report added.
Brent crude fell toward $68 a barrel, while West Texas Intermediate held above $63 as traders await the second round of talks in Geneva between the US and Iran later today.
- Eyes on private jobs data
Lastly, investors will be closely tracking ADP private payrolls numbers as they could shed light on the US Fed rate cut path, ahead of the minutes from the US central bank meeting on Wednesday.
Friday’s inflation data encouraged investor hopes for Fed rate cuts after Wednesday’s stronger-than-expected January jobs data sowed doubts.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions.
