US stock futures traded in a narrow range on Tuesday as investors prepared for quarterly earnings from Netflix (NASDAQ:NFLX), United Airlines (NASDAQ:UAL) and other major companies, while assessing renewed volatility in artificial intelligence stocks and rising oil prices.
Reports that OpenAI (NASDAQ:OAI) is seeking approximately $30 billion in fresh funding ahead of rival Anthropic’s (NASDAQ:ANTP) anticipated stock market debut added another focus for investors evaluating the scale and financing of AI investment.
At 03:17 ET (07:17 GMT), Dow Jones futures had advanced 163 points, or 0.3%, while S&P 500 futures gained seven points, or 0.1%. Nasdaq 100 futures declined 62 points, or 0.2%.
The mixed opening indications followed a technology-led recovery on Wall Street during Monday’s session.
The S&P 500 rose 0.41%, while the Nasdaq Composite gained 1.11%, recording its largest daily advance in two weeks. The Dow Jones Industrial Average slipped 0.07%.
Semiconductor stocks also recovered, with an industry tracker ending an eight-session losing streak.
However, the broader market remained uneven. Deutsche Bank analysts noted that almost two-thirds of S&P 500 constituents declined despite the index’s overall gain.
The recovery in AI-related equities followed recent selling linked to concerns about debt-funded investment and elevated borrowing costs.
Those concerns resurfaced in Asian trading on Tuesday, contributing to declines in South Korea’s Kospi and Japan’s Nikkei indices.
Netflix is scheduled to publish its quarterly results after Tuesday’s US market close.
The earnings announcement follows reports that the streaming company intends to eliminate approximately 1,000 positions, representing around 6% of its workforce.
According to The Wall Street Journal, the proposed reductions would primarily affect product, legal, technology and human resources departments.
Netflix employed approximately 16,000 people at the end of last year. The reported restructuring would represent its largest round of job cuts since 2022.
The company is also facing questions about customer engagement following several years of substantial growth.
Its unsuccessful attempt to acquire Warner Bros. Discovery’s streaming and studio assets earlier this year has added attention to its longer-term corporate strategy.
For investors, the results may provide further insight into how Netflix is managing operating expenses while addressing changing engagement trends.
United Airlines is also scheduled to report after Tuesday’s closing bell, with investors expected to focus on the relationship between passenger demand, ticket prices and higher fuel expenses.
The broader airline industry has faced increased operating costs as energy prices have risen.
In August, United CEO Scott Kirby said he expected airfares to increase gradually during the first half of next year, supported partly by continued travel demand.
However, he indicated that the expected increase would not be “as big a jump as happened this year.”
Kirby also said:
“There really hasn’t even been a blip in demand.”
His comments suggested that passenger demand had remained resilient despite higher travel costs.
The upcoming results could provide additional information about whether that demand has continued and how effectively United is managing fuel-related expenses.
Other companies scheduled to report on Tuesday include GE Aerospace, RTX Corporation and General Motors.
Competition for artificial intelligence investment capital remains another major market theme.
According to Reuters, OpenAI is accelerating efforts to raise approximately $30 billion ahead of Anthropic’s anticipated initial public offering in mid-November.
The reported fundraising could value OpenAI at more than $1.4 trillion.
Reuters, citing people familiar with the discussions, said the company is seeking commitments from investors including existing backers SoftBank Group and Abu Dhabi-based MGX.
Both OpenAI and Anthropic are reportedly competing for funding from sovereign wealth funds and large institutional investors.
OpenAI is presenting investors with an annualised revenue figure of approximately $50 billion, according to Reuters.
The report added that the company expects annualised revenue to reach $70 billion by year-end following the launch of its GPT-6 Astra model.
Meanwhile, Anthropic’s quarterly revenue reportedly increased to $16.8 billion in the third quarter from $11.6 billion in the preceding quarter.
Despite that increase, questions about the pace of revenue growth have added scrutiny to the company’s valuation ahead of its anticipated listing.
The reported fundraising efforts highlight the scale of capital being sought by leading AI developers at a time when investors are increasingly examining the financial returns associated with infrastructure investment.
Neither the proposed OpenAI financing nor Anthropic’s anticipated listing should be treated as completed transactions.
Energy markets added another source of uncertainty, with Brent crude futures trading above $110 a barrel.
US West Texas Intermediate futures rose more than 1% to $105.02 a barrel.
Brent had finished Monday near a five-month high after recovering from an earlier decline prompted by reports of possible progress in US-Iran negotiations.
Prices subsequently increased after Iran’s First Vice President said the country had “no choice but to exercise sovereignty” over the Strait of Hormuz.
The statement renewed concerns about the movement of oil through the strategically important waterway.
Recent attacks on vessels near the strait have disrupted shipping, while traffic through Hormuz has remained heavily restricted since the start of joint US-Israeli military operations against Iran in late February.
Reported shipping figures nevertheless indicated some recovery in supply movements last month.
Higher crude prices could increase operating costs for airlines and other fuel-intensive businesses, making energy developments particularly relevant ahead of United Airlines’ results.
Tuesday’s market direction may depend on the interaction between corporate earnings, AI financing developments and energy prices.
Netflix’s results will provide an opportunity to assess engagement trends and operating costs, while United Airlines’ report may clarify the effects of fuel prices on its business.
Investors will also be monitoring any further details about OpenAI’s reported fundraising, Anthropic’s anticipated IPO and the financial assumptions underpinning AI valuations.
Developments around the Strait of Hormuz remain another important variable for oil prices and broader market sentiment.
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