Stock futures are pointing to a slightly higher open on Tuesday as the market stabilizes after a massive sell-off in technology shares sent major indexes to their biggest losses of the year yesterday.
Futures tied to the Dow Jones Industrial Average were up 0.1% in recent trading, while those linked to S&P 500 and the tech-heavy Nasdaq each added 0.2%. Stocks kicked off the week with sharp losses after big declines last week, as investors have grown increasingly concerned about the potential impact of policies coming from the Trump White House and the possibility that the U.S. economy could slip into a recession.
The Nasdaq Composite’s 4% decline yesterday marked its biggest one-day drop since 2022, while the S&P 500 and Dow both had their worst days since December. The S&P 500 and Nasdaq are at their lowest levels since September, as major indexes have wiped away all the gains that led to a series of record highs after the presidential election.
Shares of EV maker Tesla (TSLA), which fell 15% yesterday to lead the tech sector rout, were up about 0.5% in premarket trading Tuesday. The stock has fallen more than 50% from its mid-December record high.
Other mega-cap tech stocks were also losing ground, though the losses were modest. Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG) and Meta Platforms (META) were each down less than 1%, while chipmaker Broadcom (AVGO) rose slightly.
Strategy (MSTR), formerly known as MicroStrategy and one of the world’s largest holders of bitcoin, was up 3%, recovering some of Monday’s 17% loss as the price of the digital currency rebounded. Crypto exchange Coinbase Global (COIN) also added 3%. Bitcoin was at $81,400 in recent trading, after falling to an overnight low of $76,600.
Shares of Delta Air Lines (DAL) were down 3% after the carrier last night cut its sales and profit guidance for the first quarter, citing economic “uncertainty” that has hit travel demand. American Airlines (AAL) and Southwest Airlines (LUV), in turn, lowered their outlooks early Tuesday. Despite the lowered guidance, shares of Southwest rose 10% as the airline also announced it would end a longstanding policy of not charging fees on checked bags. American shares were little-changed.
The yield on 10-year Treasurys, which has slumped in recent weeks as the concerns about the health of the economy have mounted, was at 4.22% recently, up from 4.21% at yesterday’s close. The economic data calendar is light today, but investors will be paying close attention to the consumer price index report that is due to be released tomorrow morning.
Gold futures were up 0.7% at $2,920 an ounce, while West Texas intermediate futures, the U.S. crude oil benchmark, rose 1.3% to $66.90 per barrel.