U.S. equity futures advanced modestly late Tuesday, with investor focus shifting to a delayed January jobs report scheduled for release on Wednesday and an inflation reading due Friday. S&P 500 futures gained 0.2%, Nasdaq 100 futures climbed 0.3%, and Dow futures edged up 0.2%.
Labor Market Data in Focus
The upcoming employment report, postponed due to a government shutdown, is forecast to show a gain of just 70,000 nonfarm payrolls for January, with the unemployment rate expected to hold at 4.4%. The release will also include significant benchmark revisions to prior data. Analysts described the labor market as "frozen" and conditions as "anemic." Treasury yields retreated, with the 10-year note slipping to approximately 4.147% following weaker consumer spending data.
Mixed Session for Major Indexes
During Tuesday's regular trading, the Dow Jones Industrial Average closed at a record 50,188.14, marking its third consecutive record close with a 0.10% gain. However, the S&P 500 declined 0.33% to 6,941.81, and the Nasdaq Composite fell 0.59% to 23,102.47. The pullback followed a disappointing retail sales report for December, which came in flat against expectations for an increase.
AI Disruption Rattles Financial Sector
Brokerage and wealth management stocks faced significant pressure amid fears of artificial intelligence disruption. The sector declined sharply after startup Altruist launched AI-powered tax-planning tools capable of analyzing documents like Form 1040 to generate customized strategies. This development triggered a sell-off in traditional brokerage firms.
Earnings Movers: Robinhood and Astera Labs
In after-hours action, Robinhood shares dropped 6.3% after the trading platform reported fourth-quarter revenue that missed Wall Street estimates, citing weaker-than-expected cryptocurrency trading volume. Meanwhile, Astera Labs, an AI infrastructure company, fell despite posting record quarterly revenue of $270.6 million and adjusted earnings of $0.58 per share, as its forward guidance failed to excite investors.
