Nasdaq futures fall as oil prices jump, key earnings loom

Nasdaq 100 futures declined on Tuesday, driven by weakening AI-linked stocks and an uptick in oil prices as traders anticipated key corporate earnings reports. CoreWeave and Nebius Group both saw double-digit declines in premarket trading, while Apple and Nvidia experienced modest declines. The market's recent bounce back in the previous session, fueled by buying of dip in tech stocks amid concerns over debt and financing costs in the AI sector, did not provide a clear buying opportunity, according to analyst Ion Jauregui.

South Korean AI infrastructure company Elice Group suffered a sharp 29% drop in its market debut, falling below the IPO price. Brent crude approached a five-month high as traders factored in geopolitical risks stemming from Houthi attacks on Saudi infrastructure and vessel attacks in the Gulf. Investors will closely monitor this week's corporate earnings to gauge companies' growth prospects amid rising macroeconomic uncertainties.

SpaceX and Netflix are set to release earnings after the close on Tuesday, while tech giants Meta Platforms and Tesla will report on Wednesday. Steel Dynamics suffered a 5.7% drop after missing third-quarter profit estimates, while General Motors beat expectations but still saw a 5.2% dip. Halliburton rose 5.7% after surpassing profit forecasts, and 3M increased its shares by 0.5% following an expanded commercial relationship with Amazon and a positive outlook for the year.