US stocks were poised to open lower on Tuesday, with mounting concerns about the health of the American economy weighing heavily on investor sentiment.
The S&P 500 has now fallen more than 3pc from its October peak, as traders grow increasingly doubtful that the Federal Reserve will deliver a long-hoped-for December interest rate cut. The shift in expectations has added pressure across the board — particularly on the tech giants that have powered much of this year’s rally.
In premarket trading, most heavyweight tech names were sliding. Amazon dropped 1.2pc, while chipmakers including AMD and Broadcom also weakened. All eyes are now on Nvidia, whose quarterly results arrive after Wednesday’s closing bell and are widely seen as a crucial test of the AI-fuelled boom. Nvidia shares were down 0.9pc, extending Monday’s nearly 2pc decline.
The broader market is also flashing potential warning signs. All three major US indices closed in the red on Monday, with both the S&P 500 and Nasdaq finishing below their 50-day moving averages for the first time since late April — a technical break that many traders view as a possible precursor to further declines. The Dow also slipped under the same threshold for the first time since October 10.
Rate-cut hopes have been tempered further as several Fed officials pushed back on the idea of easing policy next month.
Ahead of the opening bell on Tuesday, the Dow Jones Industrial Average was off 0.5pc, the S&P 500 down 0.3pc, and the Nasdaq 100 lower by 0.4pc, pointing to another soft session on Wall Street.
