Nasdaq set to start in red to extend five-week losing run

US stock markets are poised for a challenging Tuesday, with futures signaling another potential downward session that could extend the Nasdaq's unprecedented five-week losing streak. The technology-heavy index faces significant headwinds as investor sentiment remains cautious amid ongoing AI disruption concerns and uncertain market dynamics.

Market analysts like David Morrison from Trade Nation are highlighting the mounting pressures on tech and AI-related stocks. The current market environment reflects growing skepticism about technology investment returns, with many corporations reassessing their spending commitments and strategic technology investments.

The pullback is particularly notable in the software and services sector, which is now trading at a rare historical discount. Hargreaves Lansdown analyst Aarin Chiekrie suggests this presents a potential buying opportunity for investors willing to tolerate near-term volatility.

Key upcoming events that could influence market sentiment include Palo Alto Networks' earnings report, along with anticipated releases from DoorDash, Walmart, and Wayfair. Additionally, investors are closely monitoring the Federal Reserve meeting minutes and Friday's core PCE inflation update, which could provide critical insights into potential monetary policy shifts.

For precious metals investors, these market dynamics suggest a potentially defensive positioning. The technology sector's uncertainty and potential capital rotation could create interesting opportunities in alternative asset classes like silver and gold, which often serve as safe-haven investments during periods of market turbulence.