U.S. Stock Market Update: Nasdaq and S&P 500 Futures Rebound amid Tariff Tensions

Key Points:

* Nasdaq and S&P 500 futures edged higher on Tuesday, following a tech stock sell-off.
* Concerns over U.S. tech leadership in AI and President Trump's tariff threats weighed on markets.
* Contracts on the Nasdaq 100 rose 0.2%, while S&P 500 futures gained 0.1%.
* Chipmaker Nvidia saw a recovery in pre-market trading after a steep decline on Monday.
* General Motors reported strong earnings, including growth in its EV and China business.
* Boeing reported a $12 billion annual loss due to a strike and unit problems.
* Investors await earnings results from Apple, Tesla, Meta, and Microsoft this week.

Nasdaq and S&P 500 Futures Gain Ground

After a sharp stock sell-off on Monday fueled by concerns over the potential risks to tech companies from the rise of AI, Nasdaq and S&P 500 futures saw modest gains on Tuesday. Nasdaq 100 futures climbed 0.2%, while S&P 500 futures rose 0.1%.

Nvidia Stock Rebounds

Chipmaker Nvidia, which plunged 17% on Monday, saw a recovery in pre-market trading. The decline had been sparked by concerns over a new, cheaper AI model from Chinese startup DeepSeek. Nvidia's stock rose 2.5% premarket, erasing some of the previous day's losses.

Dollar Strengthens on Tariff Tensions

The U.S. dollar strengthened against other currencies after President Trump renewed tariff threats against China and other countries. The threats have raised concerns about the potential for a trade war.

General Motors Posts Strong Earnings

General Motors (GM) reported a quarterly sales and profit beat, driven by growth in its electric vehicle (EV) and China operations. The company's strong earnings results helped offset some of the negative sentiment in the market.

Boeing Reports Loss

Boeing reported an annual loss of $12 billion due to a strike and problems in key units. The defense contractor's weak earnings added to the market's volatility.

Focus on Tech Earnings

Attention is now turning to the upcoming earnings reports from Big Tech companies, including Apple, Tesla, Meta, and Microsoft. These results will provide further insights into the health of the tech sector and the potential impact of AI on the industry.