Stock futures are little changed after S&P 500 posts best day since early August: Live updates

U.S. equity futures dipped in early Tuesday trading after the S&P 500 posted its strongest single-day gain since early August. S&P 500 futures fell 0.21% by 4:23 a.m. ET, while Nasdaq-100 futures also traded lower, following Monday's rally powered by AI-related stocks.

The Monday session saw all three major averages jump as artificial intelligence stocks caught a bid alongside falling Treasury yields and lower oil prices. The combination of declining borrowing costs and reduced energy expenses fueled risk appetite across growth-sensitive technology names.

The pullback in futures suggests traders are taking profits after the sharp move higher, though the retreat remains modest. AI stocks have been a key driver of volatility in recent weeks, with their outperformance or underperformance often setting the tone for broader market direction.

Lower yields provided critical support Monday by reducing the discount rate applied to future earnings, particularly benefiting longer-duration tech and AI plays. The simultaneous drop in crude prices eased inflation concerns and offered relief to consumer-facing sectors.