Nasdaq 100 and S&P500: Tech Stocks Pull Back in Pre-Market After AI Rally

Tech Pulls Back After Monday’s Surge as AI Trade Cools

U.S. stock index futures were flat to slightly lower early Tuesday, pausing after Monday’s broad-based rally. Traders appear to be catching their breath following a session where dip-buyers came in hard, particularly in big tech and AI-linked names.

What’s Pressuring Futures This Morning?

Dow futures hovered just above the flatline while the S&P 500 and Nasdaq-100 futures dipped 0.2% and 0.4%, respectively.

The weakness is centered in tech. CoreWeave dropped 10% in premarket after issuing soft guidance, triggering fresh concerns about AI valuations. Nvidia also slipped more than 1% after SoftBank announced it had sold its entire $5 billion stake. That’s weighing on the broader chip and AI complex, which had led Monday’s rebound.

Was Monday’s Rally Just a Bounce?

The Nasdaq Composite posted its best session since late May, climbing 2.3% as traders stepped in to buy beaten-down tech stocks. Nvidia soared 5.8%, fueling more than a quarter of the S&P 500’s gain for the day. Alphabet jumped 4%, while Microsoft snapped an eight-day losing streak with a 1.9% advance.

The move came as Senate progress toward ending the government shutdown helped reduce a major risk overhang. The shutdown bill passed Monday night and now heads to the House.

Why Does the Shutdown Deal Matter?

Markets cheered the Senate vote not just because it ends immediate uncertainty, but because it restarts the flow of key economic data. Without a deal, the Fed risked heading into the December meeting without a full read on the economy.

Carson Group’s Sonu Varghese noted that extending the shutdown much longer could’ve hurt consumption, delayed paychecks, and disrupted travel — all of which would’ve left a mark on GDP.

What’s Moving in Individual Names?

Outside of AI, Paramount Skydance climbed over 5% after announcing plans to cut an additional $1 billion in costs and hike prices on Paramount+ in early 2026.

Rocket Lab added 7% after reporting a narrower Q3 loss than expected, along with a top-line beat. The RealReal surged 18% on stronger-than-expected revenue and a raised full-year forecast.

What’s the Market Watching Next?

The near-term focus is on whether Monday’s bounce has legs or was just short-covering. The AI trade is still under the microscope, with valuation anxiety simmering after a parabolic run.

If the House passes the shutdown deal quickly, traders may shift their attention back to economic data and Fed rate expectations. CPI is on deck later this week — and that could be the real catalyst.

More Information in our Economic Calendar.