Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Jan. 28, 2026.
Michael Nagle | Bloomberg | Getty Images
Futures tied to the S&P 500 were near the flatline Tuesday night after traders’ rotation out of tech names dragged the broad market index to a losing session.
S&P 500 futures slipped 0.1%, while Nasdaq 100 futures were down 0.2%. Futures tied to the Dow Jones Industrial Average added 23 points, or less than 0.1%.
In the extended session, Chipotle shares fell nearly 7% after the restaurant chain reported falling traffic for the fourth straight quarter and projected flat same-store sales growth for 2026. Advanced Micro Devices shares dropped more than 7% after its first-quarter forecast underwhelmed some analysts.
Major U.S. stock averages sold off during the previous session as investors gravitated out of riskier growth names and toward cyclical stocks like Walmart. The S&P 500 lost about 0.8%, while the tech-heavy Nasdaq Composite declined 1.4%. The 30-stock Dow shed nearly 167 points, or 0.3%, after hitting a fresh record earlier in the day.
In the regular session, Nvidia and Microsoft each lost more than 2%. Big-name artificial intelligence infrastructure names Broadcom, Oracle and Micron Technology also closed in the red. Software stocks also slid, with ServiceNow and Salesforce dropping nearly 7%. The tech sector was the worst performer in the S&P 500, down more than 2%.
Shares of private credit firms, including Blue Owl and TPG, declined on fears over artificial intelligence disrupting the software industry.
“I think you have a number of cross-currents that are impacting the markets all at once,” Joe Tanious, chief investment strategist, North America, at Northern Trust Asset Management, said Tuesday on CNBC’s “Power Lunch” about the broader market decline. “On the other hand, I still believe the underlying fundamentals are still there.”
“Now, markets are starting to be a bit more particular and nuanced with respect to which companies they want to have exposure to,” he said. “Let’s also not forget that after a three-year rally in the markets where you’ve seen these double-digit returns, valuations start to get a little stretched. It’s not going to take a whole lot to sort of poke that bear and see markets capitulate, a bit like what we’re seeing right now.”
A busy earnings week is underway, with Alphabet slated to report results on Wednesday and Amazon due Thursday.