United States stock futures were mixed on Monday night (Tuesday AEDT) following sharp losses for the S&P 500 and Nasdaq Composite during regular trading hours.
By 10:20 am AEDT (11:20 pm GMT) Dow Jones Industrial Average futures eased 0.1%, S&P 500 futures rose 0.2%, while Nasdaq 100 futures climbed 0.4%.
Select tech stocks attempted to recoup losses during after-hours trading after a steep sell-off driven by concerns about artificial intelligence (AI) valuations. Nvidia rebounded 3.2% in extended trading, recovering some ground after a 17% drop on Monday, which erased almost US$600 billion in market value - the largest one-day market cap decline for a U.S. company in history.
Other chipmakers also showed resilience, with Broadcom and Arm Holdings each rising more than 1% after the market closed. Oracle added 2.3%, bouncing back from a 13% drop during Monday's session.
In other corporate news, Nucor gained 0.1% after the company reported stronger-than-expected fourth-quarter results. Nucor posted diluted earnings per share (EPS) of $1.22 for the quarter, alongside net sales of US$7.08 billion.
On the downside, Graco dropped 4.8% following fourth-quarter results that missed expectations, with net sales declining 3% across all regions.
Monday’s market sell-off stemmed from rising doubts about the dominance of U.S. AI leaders and their costly development strategies. These concerns were amplified by Chinese startup DeepSeek, which introduced an open-source AI reasoning model that reportedly surpassed OpenAI's performance while being developed at a fraction of the cost.
During Monday’s session, the Nasdaq Composite dropped 3.1%, and the S&P 500 fell 1.5%. In contrast, the Dow Jones Industrial Average gained 0.7%, supported by strong performances in defensive stocks.
Looking ahead, market participants will be monitoring upcoming earnings reports from major tech companies as well as the Federal Reserve’s first policy meeting of the year, where interest rates are expected to remain unchanged.