US equity futures declined on Tuesday as investors weighed disappointing debut of South Korean AI startup Elice Inc. against upcoming corporate earnings. Nasdaq 100 futures slipped 0.7% and S&P 500 contracts fell 0.3% as of 7:57 a.m. in New York. Brent crude surged to a five-month high near $111 per barrel amid tensions over Iranian energy threats.
Elice's surprising 32% plunge raised doubts about AI valuations, recalling last week's concerns over Core Weave Inc.'s debt distress. Analysts warn a "prolonged deterioration in investor confidence" may pose a greater risk than debt servicing ability. Investors also eye earnings season, with Netflix shares up 0.4% in premarket trading after erasing over $135 billion in market value year-to-date.
SpaceX slipped 1.1% following Elon Musk's pledge to gift shares to American children. In single-stock trading, Apple underperformed Magnificent Seven peers after Loop Capital downgraded shares to hold, citing iPhone shipment reductions.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing