Dow futures fall 200 points: 5 things to know before Wall Street opens

US stock futures showed a slight pullback early Tuesday, with Dow futures dropping 199 points (0.39%), S&P 500 futures down 0.17%, and Nasdaq 100 futures slipping 0.1%. The retreat followed eight consecutive record closes for major indexes, as traders weighed AI-driven gains against economic data and Federal Reserve policy expectations. Hewlett Packard Enterprise (HPE) led premarket gains with a 29% jump after advancing its long-term financial targets by two years, citing surging demand for AI-focused servers. The move reinforced AI infrastructure spending as a key growth driver for hardware suppliers, lifting peers like Dell Technologies (up 3.3%) and Super Micro Computer (up 5.1%). Alphabet shares fell nearly 2% after announcing plans to raise $80 billion in equity—including backing from Berkshire Hathaway—to fund AI infrastructure expansion. The funding highlights the massive capital requirements for AI competition, though investors reacted cautiously amid concerns over dilution and slower monetization. Traders now focus on job openings data, Fed commentary, and Middle East risks as potential catalysts for Wall Street’s opening. The mixed signals reflect lingering uncertainty despite the AI-driven rally, with some profit-taking evident in futures trading. HPE’s surge underscores the market’s preference for companies directly benefiting from AI data-center investments, while Alphabet’s equity raise signals the financial strain of scaling AI capabilities. Analysts note that HPE’s growth outlook hinges on sustained AI server demand, while Alphabet’s funding strategy could face scrutiny if cloud revenue growth lags expectations.