Market snapshot
U.S. equity futures were largely unchanged late Tuesday as traders assessed a pullback in technology shares that pushed the main benchmarks into the red. S&P 500 Futures were down 0.1% at 6,936.0 points, Nasdaq 100 Futures fell 0.2% to 25,393.75 by 20:01 ET (01:01 GMT), and Dow Jones Futures traded up 0.1% at 49,373.0 points.
Wall Street performance and drivers
Major onshore indexes closed lower on Tuesday, with the S&P 500 ending the session down 0.8%, the Nasdaq Composite off roughly 1.4%, and the Dow Jones Industrial Average slipping 0.3%. The downward pressure was concentrated in richly valued technology names, as investors rotated away from stocks viewed as more sensitive to shifts in artificial intelligence adoption and competitive dynamics.
Traders and portfolio managers reduced exposure to AI-related infrastructure and software firms, citing concerns about AI's disruptive implications for established software and analytics businesses. Among the larger names, Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT) each fell nearly 3% and were highlighted as among the day's larger laggards. Other technology companies that retreated included Oracle (NYSE:ORCL), Adobe Systems (NASDAQ:ADBE), and Datadog Inc (NASDAQ:DDOG), as market participants reassessed growth trajectories and pricing power in a more contested AI marketplace.
Healthcare and sector breadth
The healthcare sector also came under pressure after Novo Nordisk (NYSE:NVO) issued a warning that it expects a steep decline in annual sales. The company's U.S.-listed shares plunged nearly 15%, amplifying losses across drug stocks and contributing to the broader market weakness.
Notable after-hours moves
In extended trading, Advanced Micro Devices (NASDAQ:AMD) shares fell more than 7% after management's first-quarter outlook disappointed some analysts, even though the company reported quarterly results that beat estimates. AMD recorded a fourth-quarter revenue figure of $10.3 billion, a company record.
Restaurant operator Chipotle Mexican Grill (NYSE:CMG) also moved lower in after-hours trade, with shares dropping nearly 6% after the company reported customer traffic declined for a fourth straight quarter. Chipotle updated its fiscal 2026 outlook for same-store sales to be about flat, versus analysts' consensus projecting a 1.86% increase.
Near-term focus
Market participants are now looking ahead to upcoming earnings from several large companies later this week, including Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), for additional direction. Given recent sector rotation and company-specific guidance, traders appear focused on how reported results and management commentary will affect expectations for growth and competitive dynamics, particularly in technology and healthcare.