U.S. stock futures turned lower in Asian trading on Tuesday as investors grew cautious ahead of Nvidia’s upcoming earnings report and the long-delayed September U.S. jobs data.
S&P 500 futures fell 0.6%, Nasdaq 100 futures dropped 0.8%, and Dow futures lost 0.4%, reflecting continued weakness in tech stocks and fading bets on a December rate cut by the Federal Reserve.
On Monday, Wall Street ended broadly lower—the S&P 500 fell 0.9%, the Nasdaq lost 0.8%, and the Dow dropped 1.2%. Tech shares led the declines as traders reduced exposure before Nvidia’s results amid renewed concerns over overheated AI valuations. Nvidia slid 1.9%, extending recent losses, while Alphabet rose 3.1% after Berkshire Hathaway disclosed a $4.3 billion stake and optimism grew over its upcoming Gemini 3.0 AI model.
Cyclical stocks also weakened as concerns over U.S. economic momentum and rising global bond yields persisted. Investors are awaiting several key U.S. economic releases delayed by the government shutdown, with Thursday’s nonfarm payrolls data seen as crucial.
Fed Governor Christopher Waller recently called for additional rate cuts to support the labor market, but market expectations remain tempered. According to CME FedWatch, the odds of a 25-basis-point rate cut in December fell to 40.8%, while the probability of holding steady rose to 59.2%.
Analysts said that if the jobs data disappoints or inflation continues to ease, the Fed may adopt a more dovish tone by year-end—but near-term volatility across risk assets is likely to remain high.