Dow, Nasdaq 100 Futures Slip As Risk Appetite Dips After 7-Day Rally: Strategist Stays Constructive On Equities

U.S. equity futures eased early Tuesday, hinting at a pause after the S&P 500’s seven-session winning streak. A resilient disinflation trend and optimism around AI-led productivity remain key supports, with one strategist arguing the market can absorb slower growth if price pressures continue to cool and AI gains begin to materialize in 2026 and beyond.

Futures Snapshot

As of 12:45 a.m. ET, S&P 500 and Nasdaq 100 futures were down 0.05% and 0.01%, respectively. Dow and Russell 2000 futures slipped more than 0.14% each, pointing to a softer open after a strong run.

Monday Recap: Rally Broadens

Stocks pushed higher Monday following early hesitation, with communication services, consumer discretionary, IT, energy, industrials, and utilities leading gains. The Nasdaq Composite, Nasdaq 100, S&P 500, and Russell 2000 closed at record levels, while the Dow finished just shy of its peak. Sentiment was buoyed by strength in semiconductors and AI-related names, with a prominent chipmaker’s tie-up in the AI ecosystem adding to the momentum.

Among major ETFs, SPDR S&P 500 (SPY) rose 0.36%, Invesco QQQ (QQQ) gained 0.75%, and iShares Russell 2000 (IWM) advanced 0.40%. The SPDR Dow Jones Industrial Average (DIA) dipped 0.14%.

Policy and Macro Backdrop

Hopes that Washington will resolve the government funding standoff have helped underpin risk assets. In a positive sign, the White House signaled willingness to negotiate on health care policy to break the impasse, calling for an immediate end to the shutdown.

AI enthusiasm continues to provide a tailwind. A recent earnings-trend update highlighted a record number of IT companies issuing positive EPS guidance for the September quarter, with software and semiconductor equipment names standing out.

Strategist’s Take: Constructive on Equities

WisdomTree Senior Economist Jeremy Siegel remains constructive ahead of the third-quarter earnings season. He noted that money growth is subdued, shelter inflation is easing, commodity pressures are contained, and the labor market is cooling rather than cracking—conditions that support further Fed easing over time. Siegel added that markets can handle slower growth if disinflation persists and AI-driven productivity becomes evident from 2026 onward.

Fed Speakers and Data on Deck

More commentary from Federal Reserve officials could influence trading on Tuesday. Scheduled appearances include:

• Atlanta Fed President Raphael Bostic (10:00 a.m. ET)
• Fed Vice Chair for Supervision Michelle Bowman (10:05 a.m. ET)
• Fed Governor Stephen Miran (10:45 a.m. ET and 4:05 p.m. ET)
• Minneapolis Fed President Neel Kashkari (11:30 a.m. ET)

At 3:00 p.m. ET, the Fed will release August consumer credit, expected at $14 billion versus $16 billion in July.

Earnings

McCormick (MKC) is slated to report before the opening bell.

Commodities, Bonds, and Currencies

Crude oil futures extended gains in Asian trading. Gold futures briefly topped $4,000 before slipping back below that level. The 10-year Treasury yield edged lower in the Asian session after rising 4.3 basis points on Monday, while the U.S. dollar firmed modestly against most major counterparts.

Asia-Pacific Markets

Trading across the region was mixed. Japanese equities advanced and Taiwan’s tech-heavy market rallied, while Australia and Malaysia retreated. Markets in China, Hong Kong, and South Korea were closed for public holidays.

This article is for informational purposes only and is not investment advice.