Stock futures slip after Nasdaq Composite retreats from record: Live updates

U.S. stock futures ticked lower Tuesday, putting Wall Street on track to build on the previous session's decline.

Futures tied to the Dow Jones Industrial Average dropped 50 points, or 0.1%. S&P 500 futures dipped 0.2%, while Nasdaq-100 futures fell roughly 0.5%.

AMD shares traded 2% lower after Bloomberg News reported the chipmaker hit a regulatory snag that will prevent it from selling an artificial intelligence chip to China. Apple shed 2% on the back of a report from Counterpoint Research that found iPhone sales plunged in China in the first six weeks of 2024.

GitLab tumbled more than 20% after the software company posted a weak forecast for the full year. On the other hand, Target jumped more than 7% after holiday-quarter earnings came in better than Wall Street anticipated.

Those moves follow a losing day on Wall Street on Monday, which pulled the technology-heavy Nasdaq Composite off record highs even as high-flying AI winner Nvidia advanced.

Overall, large-cap tech companies are still the best way to play the AI trend, Jason Draho, UBS Global Wealth Management head of asset allocation Americas, told CNBC.

"They're still the ones that have the scale to kind of benefit," he said on CNBC's "Closing Bell: Overtime" on Monday. "Their valuations are extreme but they're also growing incredibly fast." 

Draho said although there are fears of "pent-up exuberance" in the market similar to 1996, he thinks there's still more upside potential ahead. 

On the data front, the S&P Global US Services purchasing managers' index, durable goods orders and ISM Services Index are scheduled for release Tuesday morning.

Add the Jeremy Siegel to the Wall Street crowd that says the current stock market is reminiscent of the dot com internet euphoria