New York, 24 February 2026 – U.S. stock index futures edged higher on Tuesday as investors attempted to recover from a broad market sell-off a day earlier, with lingering uncertainty over tariff policy and artificial intelligence (AI) risks keeping market sentiment cautious.

Following a sharp decline across major equity markets on Monday, driven by worries about the unclear impact of President Donald Trump’s tariff strategies and mounting fears over the pace and economic implications of AI adoption, futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 showed modest gains in pre-market trading on Tuesday.

At around 07:16 a.m. ET, Dow E-mini futures were up about 0.25%, S&P 500 E-minis added roughly 0.17%, and Nasdaq 100 E-minis rose about 0.37%, suggesting a tentative rebound after Monday’s volatility.

Mixed Sector Signals and Earnings in Focus

Megacap technology names, including Microsoft and Meta Platforms, bounced slightly after being hit in the previous session, while consumer discretionary stock Home Depot climbed after reporting better-than-expected quarterly sales. A sharp pre-market rally in Advanced Micro Devices shares, after announcing a multiyear AI chip supply deal with Meta, helped underpin futures gains.

Analysts pointed to continued pressure on financials and software stocks, sectors that bore the brunt of Monday’s sell-off, as tariff and AI worries persist. The S&P 500 software and services index, which has lagged this year, continued to underscore the market’s unease over how artificial intelligence investment and disruption will affect productivity and corporate margins.

Investors are also watching a slate of key earnings later in the week, including results from major AI-linked companies such as Nvidia and other software firms, which could provide clues about sector resilience amid rising AI scepticism.

Policy Backdrop and Market Sentiment

The market’s recent turbulence follows a tumultuous period in which a U.S. Supreme Court decision restricting the executive’s tariff authority triggered renewed tariff announcements. In response, President Trump introduced a temporary 10% global tariff, later suggesting it could rise to 15%, though details on implementation timing remain unclear. The resulting policy ambiguity has unsettled markets and contributed to volatility.

With traders now bracing for speeches from multiple Federal Reserve officials and the upcoming State of the Union address, attention is also focused on the central bank’s policy outlook and broader macro risks, including inflation and geopolitical tensions.

Investor Takeaway

Tuesday’s modest futures gains signal a measured attempt by markets to stabilise after sharp losses, but broader sentiment remains fragile. Persistent uncertainty over trade policy and the real-world economic impact of AI innovation are likely to continue shaping equity performance and risk appetite in the near term.

Author

Bernard Lee

Bernard is a social activist dedicated to championing community empowerment, equality, and social justice. With a strong voice on issues affecting grassroots communities, he brings insightful perspectives shaped by on-the-ground advocacy and public engagement. As a columnist for The Ledger Asia, Bernard writes thought-provoking pieces that challenge norms, highlight untold stories, and inspire conversations aimed at building a more inclusive and equitable society.