AI Jitters and Global Talks: Market Shifts

Stock futures in the U.S. are poised for a lower start on Tuesday following a long weekend, sparked by anxieties over potential AI-induced market disruptions and developments in the nuclear dialogue between the U.S. and Iran. Recent concerns have ignited significant selloffs in software companies, brokerages, and trucking sectors, causing Wall Street's primary indices to experience their most notable weekly drop since November.

The geopolitical landscape also adds complexity, as Chinese AI advancements amplify uncertainty. On Monday, Alibaba introduced its latest AI model, Qwen 3.5, designed for executing complex tasks autonomously. Subsequently, most tech stocks in the U.S. experienced a decline, with Nvidia and Microsoft recording losses.

In parallel developments, indirect talks have commenced in Geneva between the U.S. and Iran concerning their nuclear dispute. Key economic indicators, especially the U.S. Federal Reserve's preferred inflation metric, will be scrutinized this week, with possible implications for future interest rate cuts.