U.S. Futures Rebound Amid AI Disruptions and Global Trade Tensions

U.S. futures linked to major indices increased following substantial losses due to a low-cost AI model from China. Despite past dips, AI-related firms like Nvidia saw gains. Analysts focus on upcoming earnings and economic indicators, alongside trade policy uncertainties under President Trump's tariff proposals.

U.S. stock futures associated with the S&P 500 and the Nasdaq showed a recovery on Tuesday after a sharp decline the previous session. This downturn was driven by the emergence of an affordable Chinese AI model, which challenged the stocks of U.S. technology companies.

Monday's stock market selloff was ignited by Chinese firm DeepSeek's launch of AI models reportedly matching or outperforming top U.S. models at lower costs. Analysts at BCA Research noted that the hefty investments made by major U.S. tech companies into AI may be undermined by more affordable options.

AI industry leader Nvidia experienced a 4.8% increase in premarket trading, rebounding after losing $593 billion in market value in a historic one-day slump. Other AI-connected stocks, including Oracle and Broadcom, also saw positive movements. The market eagerly anticipates company earnings reports and remains alert to U.S. tariff policy developments proposed by President Trump.

(With inputs from agencies.)