Stock futures decline after major indices decline

Stock futures fell on Tuesday after all three major indexes sold off to start the week.

Futures tied to the Dow Jones Industrial Average, S&P 500, and tech-heavy Nasdaq fell 0.5%, 0.4%, and 0.4%, respectively, a day after all indexes fell nearly 1% as concerns persist about stock valuations linked to artificial intelligence.

AI darling Nvidia (NVDA), the world’s most valuable company, closed down nearly 2% yesterday as investors eagerly awaited its quarterly earnings report after the bell on Wednesday. Nvidia shares fell another 1% in premarket trading, while shares of AI favorite Oracle (ORCL) fell about 1.5% after a 1.3% decline on Monday.

Shares of Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), and HP (HPQ) also fell yesterday, which closed down 8.4%, 7%, and 6.8%, respectively, after Morgan Stanley downgraded the shares amid rising memory chip prices. All three stocks were indicating a slight decline in pre-market movement.

Shares of Home Depot (HD) fell 3% before the bell after the home improvement retailer reported disappointing third-quarter earnings and lowered its full-year forecast. Other retailers TJX (TJX), Lowe’s (LOW) and Target (TGT) are scheduled to report results Wednesday morning and Walmart (WMT) early Thursday.

Shares of Alphabet (GOOGL), Google’s parent company, which hit an all-time high intraday and ended 3.1% higher yesterday after Warren Buffett’s Berkshire Hathaway (BRK.B) revealed it bought 17.8 million shares worth more than $4 billion in the third quarter, rose nearly 1% before the bell.

Bitcoin was trading at around $91,400 after falling below $89,300 overnight, its lowest level since late April. The yield on the 10-year Treasury note fell to 4.11% from Monday’s close of about 4.13%.

There was little change in the US dollar index, which measures the dollar’s performance against a basket of foreign currencies, at 99.60. West Texas Intermediate crude futures, the US oil benchmark, also settled at $59.90 per barrel. Gold futures fell 0.7% to $4,045 an ounce.