On Tuesday, futures exhibited minimal movement, following consecutive losses in the S&P 500, which faced increasing pressure within the technology sector. S&P 500 futures exhibited minimal movement, while futures associated with the Dow Jones Industrial Average increased by a mere 3 points, or 0.01%. Futures for the Nasdaq 100 exhibited a slight decline. The S&P 500 experienced a decline of 0.35% on Monday, whereas the Nasdaq Composite, known for its concentration in technology stocks, decreased by 0.5%. The 30-stock Dow experienced a decline of nearly 250 points.

Investors divested from several of this year’s prominent technology performers, as artificial intelligence-related stocks such as Nvidia experienced a decline of over 1%, while Palantir Technologies fell by 2.4%. “What you’re seeing is that people are concerned about overbuilding this [AI] bubble,” stated Barbara Doran. The market faced pressure on Monday due to losses in the materials sector. Precious metals miner Newmont experienced a decline of 5.6% following silver futures, which recorded their most significant drop since 2021.

Market participants will be attentive to the release of home price data scheduled for 9 am. The minutes from the Federal Reserve’s December meeting are anticipated to be released at 2 pm. Looking forward, the public markets will remain closed on Thursday in observance of New Year’s Day. Applied Digital experienced an increase of over 1% in the premarket following the announcement of its decision to spin off its cloud business and merge it with Ekso Bionics. The shares of the latter company, with a market capitalization of merely $18.5 million, experienced a rally of 42.3%.

The three major averages are positioned to achieve double-digit gains for the year. The S&P 500 is projected to achieve a 17.4% increase, whereas the Nasdaq Composite has risen by over 21% in 2025. The Dow Industrials are underperforming, with a year-to-date increase of 13.9%. In the expansive landscape of the S&P 500, the communications services and information technology sectors have emerged as the leading performers, with gains of 32.5% and nearly 25%, respectively, as the artificial intelligence trade continues to thrive in yet another robust year. Data storage company Western Digital is projected to experience an approximate 300% increase in 2025, whereas Micron Technology has seen a remarkable rise of nearly 250%. Palantir, a prominent player in defense technology, is reporting an increase exceeding 140%. Despite all 11 sectors of the S&P 500 showing positive performance year to date, the real estate sector has notably lagged behind. The sector has experienced a modest increase of 0.5% in 2025, with notable declines observed in Alexandria Real Estate Equities, which has decreased by nearly 50%, and Iron Mountain, which has fallen by 21%.