Futures linked to the major U.S. stock indices are subdued, with jitters around artificial intelligence disruptions clouding sentiment ahead of key earnings this week. President Donald Trump’s new 10% global tariffs come into effect following a Supreme Court decision striking down his emergency-powers levies. Paramount Skydance reportedly submits a higher bid for Warner Bros Discovery, while Home Depot is due to report its latest quarterly returns.

1. Futures muted

U.S. stock futures hovered just above the flatline on Tuesday as investors geared up for the release this week of key corporate earnings, including from artificial intelligence-darling Nvidia.

By 03:03 ET (08:03 GMT), the Dow futures contract had risen by 47 points, or 0.1%, S&P 500 futures had climbed by 10 points, or 0.1%, and Nasdaq 100 futures had moved up by 38 points, or 0.2%.

The main averages on Wall Street sank in the prior session, dragged down by ongoing worries over disruption to a variety of companies from new AI models. Some analysts said the latest leg lower was fueled by a report from Citrini Research which posited a dire hypothetical scenario for the coming years in which AI sparks a wave of mass unemployment among white collar workers, dents consumer spending, drives loan defaults, and ultimately leads to economic contraction.

Citrini took pains to highlight that the report was a “scenario, not a prediction,” yet this did little to ease a market already anxious about possible pressures facing mega-cap tech companies that have spent big on building out AI infrastructure.

“As has been the case for weeks, AI is clearly a net negative for the equity market as hyperscalers get weighed down [free cash flow] fears while disruption worries eviscerate software and several other sectors,” analysts at Vital Knowledge said in a note.

2. Trump’s 10% tariffs come into effect

U.S. President Donald Trump’s new global trade tariffs went into effect at a 10% level at midnight on Tuesday after a Supreme Court ruling last week struck down his so-called “reciprocal” levies.

The 10% level was communicated through the U.S. Customs and Border Protection’s messaging service, and is lower than the 15% tariff touted by Trump after the decision, which found that Trump’s use of emergency economic powers to impose sweeping surcharges on countries around the world was unlawful.

Trump had initially declared a universal tariff of 10% in response to the ruling, before threatening to raise the across-the-board levy to 15% a day later. However, the White House is working on a delivering a formal order raising the rate to 15%, Bloomberg News has reported.

Crucially, these new tariffs, which Trump is issuing under Section 122 of the 1974 Trade Act, will only be in effect for the next 150 days. Congress will then need to decide on the fate of the tariffs at the end of this period.

Given the often murky outlook for Trump’s trade agenda, uncertainty has surrounded the path ahead for specific deals his administration agreed to with a variety of trading partners. Trump, confronted with some countries reportedly beginning to reassess whether these accords are still standing in the wake of the Supreme Court ruling, warned them in a social media post not to “play games.”

3. Paramount submits higher bid for Warner Bros Discovery – report

Paramount Skydance has increased its offer for Warner Bros Discovery, according to Reuters, as the group attempts to persuade the HBO Max owner to ditch its deal with Netflix.

Citing a source familiar with the matter, Reuters report that Paramount’s new bid improves its initial offer of $30-per-share, or about $108.4 billion, for Warner Bros as a whole. Warner Bros previously said an earlier proposal from Paramount undervalued the company, and gave the CBS parent a seven-day deadline until February 23 to file a revised offer.

Netflix, on the other hand, has notched an agreement with Warner for its studios and streaming assets that is worth $27.75 per share in cash — roughly $82.7 billion.

Separately, Variety reported that Warner Bros is likely to at least take the Paramount offer under review even as it tries to persuade shareholders to back the Netflix accord.

At stake in the merger battle is control over Warner Bros properties, which include lucrative franchises like “Game of Thrones” and “Harry Potter.”

4. Home Depot to report

On the earnings front, Home Depot is due to report its latest quarterly returns before the opening bell on Wall Street on Tuesday.

The home-improvement products chain previously outlined underwhelming forecasts for comparable sales growth and profit in its 2026 fiscal year, as the firm grapples with tepid demand for big-ticket items.

At an investor day in December, finance chief Richard McPhail flagged that recent uneasiness among customers hit by cost-of-living strains is anticipated to carry into this year, warning that there has not been “a catalyst or an inflection in housing activity.”

Elevated home prices and muted hiring have contributed to choppy U.S. housing demand in recent months, even as interest and mortgage rates have shown signs of moderation.

Home Depot said is expects same-store sales to expand in the flat to 2% range in its fiscal 2026, while adjusted per-share income is seen flat to 4% higher. Both were below LSEG expectations cited by Reuters.

5. Oil nears seven-month high

Oil prices neared seven-month highs ahead of a fresh round of U.S.-Iran nuclear talks later in the week.

Brent futures climbed 0.2% to $71.28 a barrel, and U.S. West Texas Intermediate crude futures rose 0.3% to $66.51 a barrel.

Both contracts are currently trading around levels last seen in early August 2025.

Iran and the U.S. are set to hold a third round of nuclear talks on Thursday in Geneva, amid growing concerns about the risk of a military conflict as Washington seeks the end of Iran’s nuclear program.