Stock market today: Nasdaq, S&P 500 poised to chip away at losses after DeepSeek-inspired tech rout

Nasdaq and S&P 500 futures edged up on Tuesday, following a steep stock sell-off spurred by concerns of over-confidence in Big Tech’s potential payoff from investments in AI.

Investors also assessed a return to a tougher tone on tariffs from President Donald Trump, ahead of the start of a Federal Reserve meeting where the impact of his policies is likely to be discussed.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose roughly 0.2%, coming off a closing loss of over 3%. S&P 500 futures (ES=F) put on 0.1%, while Dow Jones Industrial Average futures (YM=F) hovered below the flat line.

Stocks are set to chip away at losses booked in Monday’s tech-led rout, which came as buzz built for Chinese startup DeepSeek’s potentially cheaper AI model. That risk to US leadership in AI raised questions about whether chipmakers and other tech names call follow through on high earnings expectations.

Bellwether chip giant Nvidia (NVDA) rose almost 3% in pre-market, having plunged 17% in the previous session to erase a record $589 billion in market value.

Meanwhile, the dollar (DX=F) strengthened after renewed tariff threats from Trump that revived worries about a trade war, already in focus after a brief standoff with Colombia. Trump said he wants universal tariffs “much bigger” than the 2.5% his incoming Treasury Secretary, Scott Bessent, reportedly plans to introduce gradually.

With that risk to inflation in mind, investors are keeping a watchful eye on the Fed’s two-day policy meeting that begins later Tuesday. The central bank is expected to leave interest rates unchanged, given recent solid economic readings.

General Motors (GM) kicked off a fresh batch of key earnings updates, posting a quarter sales and profit beat as it turned the corner in its EV and China business. Boeing (BA) reported an annual loss of almost $12 billion in the wake of a strike and problems in key units.

With the DeepSeek risk in mind, focus is tighter on Big Tech earnings coming this week, with results from Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT) on the docket.