AI Fears Weigh on Stocks Amid Gains in Financials

U.S. stock futures dipped late Tuesday as investors continued to grapple with concerns over artificial intelligence's potential impact on business models.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted losses in the prior session, but financial stocks helped steady the broader market.

Software shares, however, were not so lucky. Palo Alto Networks (PANW) fell over 8% in extended trading after cutting its FY26 adjusted earnings per share forecast and issuing weaker-than-expected Q3 EPS guidance.

Applied Digital Corporation (APLD) also slid after Nvidia exited its roughly $177 million stake in the company, while Compass Pathways plc (CMPS) slipped nearly 4% in extended trading after announcing a $150 million American Depositary Shares offering following positive Phase 3 trial data for its COMP360 treatment.

Despite these losses, financial stocks like Citigroup and JPMorgan Chase helped offset weakness in technology, nudging the Dow into positive territory by the close.