5 Big Market Movers Before the Open (Feb. 24, 2026): Tariffs, AI Spending Fears, and a Mega Chip Deal

Published context: U.S. markets are trying to steady themselves on February 24, 2026 after a sharp drop the day before. Investors are balancing tariff headlines, fast-moving artificial intelligence (AI) spending concerns, major company news, and a high-profile political address expected later tonight.

Quick Snapshot: What’s Driving Today’s Mood

Before the opening bell, traders are focused on five main themes:

Stock futures attempting a small rebound after Monday’s sell-off
Tariff uncertainty returning to the center of the story after a court ruling and a new proposed policy response
AI infrastructure spending worries—plus a giant new deal that could reshape the “AI hardware race”
Home improvement retail results that hint at consumer demand in a challenging housing market
The State of the Union and its potential impact on policy expectations and investor sentiment

Below is a detailed, rewritten briefing in plain English, explaining not just what happened, but why it matters for everyday investors.

1) Stock Futures Edge Up After a Steep Sell-Off

U.S. stock futures were slightly higher early Tuesday morning, a sign that markets may be trying to regain balance after a rough start to the week. On Monday, the Dow Jones Industrial Average fell more than 800 points, and the broader market also slid.

What futures were signaling

In premarket action, contracts linked to the Dow were up about 0.1%. Futures tied to the S&P 500 were roughly flat, while Nasdaq futures were up around 0.3%. That’s not a huge bounce, but it can suggest that some traders believe Monday’s move may have been overdone—or that they’re waiting for more information before placing bigger bets.

Why stocks fell Monday

Two concerns weighed heavily on investors:

Tariffs: Confusing and fast-changing trade policy can make it harder for companies to forecast costs and profits. When businesses can’t plan with confidence, markets often become jumpy.
AI trade nerves: Some investors are increasingly worried that large technology companies may be spending too aggressively on AI infrastructure. Big spending can pay off in the long run, but in the short run it can squeeze profits—especially if demand doesn’t grow as quickly as expected.

What other markets were doing

After investors rushed toward safety on Monday, some of those “safe haven” moves cooled down early Tuesday:

Gold: After a strong jump the day before, gold futures were down about 1%, recently near $5,175 per ounce.
Bitcoin: Bitcoin was around $63,200, down from an overnight high near $65,000, and close to its lowest levels of the month.
10-year Treasury yield: The yield held near 4.03%, a level that can influence many borrowing rates across the economy (like mortgages and business loans).

Why this matters: When multiple markets (stocks, bonds, commodities, crypto) all react strongly to headlines, it often signals uncertainty. In those moments, even small pieces of news—an earnings report, a government statement, or a policy leak—can move prices quickly.

2) Tariffs Take Center Stage Again as “National Security” Options Are Floated

Trade policy came roaring back into the spotlight after a major legal development. A recent U.S. Supreme Court ruling struck down many tariffs enacted last year, and now the administration is reportedly considering a new route: national security tariffs focused on specific industries.

How the story got here

After the court decision, President Donald Trump announced a 15% global tariff in response to the ruling. The message to markets was clear: even if one set of tariffs is challenged, another approach may follow.

Which industries could be targeted

According to reporting referenced in the briefing, the proposed national security tariffs could hit a handful of categories, including:

Large-scale batteries
Cast iron and iron fittings
Plastic piping
Industrial chemicals
Power grid equipment
Telecommunications equipment

These are not “headline-friendly” consumer items like phones or sneakers—but they are foundational materials used in building, manufacturing, and infrastructure. That means ripple effects could spread widely: construction costs, industrial supply chains, and even large technology projects could be affected.

FedEx’s lawsuit adds another layer

In another sign that tariff questions are turning into real financial and legal battles, FedEx filed suit seeking a full refund for tariffs it paid. The briefing noted this is the first major company to file for recovery after the court ruling. In premarket trading, FedEx shares were roughly flat.

Why this matters: Tariffs don’t just shift prices; they can reshape corporate strategies. Companies may change suppliers, raise prices, delay investments, or move operations. For investors, it often means higher uncertainty—especially in sectors tied to manufacturing, transport, infrastructure, and industrial materials.

3) AMD Surges After a Massive AI Infrastructure Deal With Meta

One of the biggest premarket stories came from semiconductors and AI infrastructure. Advanced Micro Devices (AMD) shares jumped sharply after news that AMD struck a major AI deal with Meta Platforms (the company behind Facebook and Instagram).

What the deal includes

AMD is set to provide Meta with 6 gigawatts of AMD Instinct GPUs to power Meta’s AI infrastructure. That’s a huge scale, and it underlines how intense the “AI buildout” has become. In simple terms: Meta wants more computing power to train and run AI systems, and AMD is positioning itself as a key supplier.

Why investors reacted so strongly

Several details stood out:

Performance-based warrant: AMD issued Meta a warrant for up to 160 million shares, designed to vest if certain shipment milestones are met.
Scale compared to AMD’s share count: AMD has just over 1.6 billion shares outstanding, so the warrant size is meaningful, and investors will want to understand how it could affect ownership and future dilution.
Deal value talk: Financial terms were not disclosed, but the briefing referenced a report that the deal could be worth more than $100 billion.

Coming into Tuesday, AMD shares were down about 8% so far in 2026, so the premarket jump of about 10% was especially notable. Meanwhile, Meta shares were slightly lower before the open.

What this says about the AI hardware race

This story lands at an interesting moment. On one hand, markets have been anxious that big tech companies are spending too much on AI infrastructure. On the other hand, a deal like this suggests that those companies are still committed to building—aggressively.

Why this matters: For investors, this is a reminder that “AI” isn’t just software hype. It’s also physical infrastructure: chips, data centers, electricity usage, and long-term supply contracts. Winners may include chipmakers and data center supply chains. Risks may include profit pressure for the buyers if spending rises faster than revenue.

4) Home Depot Rises After Beating Expectations

Outside of tech, investors also got a fresh read on consumer demand and home-related spending. Home Depot shares rose in premarket trading after the retailer reported quarterly results that beat analyst expectations.

The key numbers

Revenue: $38.2 billion for the fiscal 2025 fourth quarter, down nearly 4% from the year-ago quarter, but still above estimates compiled by Visible Alpha.
Adjusted EPS: $2.58 versus a consensus estimate of $2.52.
Comparable sales: +0.4%, beating expectations for a -0.2% decline.

Following the report, Home Depot shares were up about 3% in early premarket moves.

Why this is a big deal in a “slow housing” environment

Home improvement retailers have faced pressure because the housing market has been sluggish. When people buy fewer homes or delay moving, they often delay major renovations too. But Home Depot’s report suggested some resilience: even if total revenue dipped from last year, the company still delivered better-than-feared performance on profit and comparable sales.

The briefing also noted that analysts see potential tailwinds this year, such as tax refunds and housing affordability measures. In other words, investors are watching for signs that consumers may start spending again on repairs, upgrades, and projects—especially if policy changes or financial conditions make housing feel a bit less tight.

What to watch next in the sector

Home Depot doesn’t move alone. Rival Lowe’s is also scheduled to report earnings this week, which could confirm—or challenge—the idea that the worst of the home improvement slowdown is easing.

Why this matters: Retail earnings can act like a “health check” for the economy. Home Depot is especially important because it touches housing, building materials, consumer confidence, and do-it-yourself spending—all areas that can signal where the economy is heading.

5) The State of the Union Could Shape Policy Expectations

The final major item on today’s list is political—but it can still affect markets, especially when it involves taxes, health care, and consumer costs. President Donald Trump is expected to deliver the State of the Union address tonight, with a strong focus on the economy and affordability.

What the theme signals

The reported theme is: “America at 250: Strong, Prosperous and Respected.” Investors often listen closely for policy priorities, because priorities can become legislation, regulation, and budget changes—all of which can move sectors.

Key policy areas expected to come up

Based on the briefing, topics expected to be highlighted include:

Tax cuts tied to a plan referred to as the “One Big, Beautiful Bill”
Prescription drug pricing efforts
Health care changes that would redirect federal subsidies toward consumers rather than insurers
Electricity costs and AI data centers, including protecting consumers from higher power rates linked to data center demand
Border security and crime messaging

Why this matters: Even when no immediate law changes overnight, major speeches can guide expectations. Expectations influence markets because investors try to price in what might happen next—whether it’s new taxes, shifts in health care funding, energy policy, or trade rules.

Deeper Take: How These Five Stories Connect

At first glance, today’s five themes can look unrelated: tariffs, chip deals, retail earnings, and a political speech. But they connect through one big idea: confidence.

Confidence in costs (tariffs and supply chains)

When tariffs shift, companies may face higher input costs or supply disruptions. That makes earnings harder to predict. And when earnings are harder to predict, investors may demand a “risk discount,” pushing stock prices lower.

Confidence in investment payoffs (AI spending)

AI requires huge spending today for potential gains tomorrow. The market’s debate is simple: Will this spending create enough future revenue to justify today’s cost? The AMD–Meta deal shows the spending is real and scaling fast.

Confidence in the consumer (Home Depot)

When a consumer-facing company beats expectations, it can ease fears that households are tapped out. Home Depot’s results were one signal—investors will look for more confirmation from other retailers and economic reports.

Confidence in the policy path (State of the Union)

Markets don’t need to agree with a policy agenda to react to it—but they do need clarity. When policy direction feels unpredictable, markets can become more volatile. When it feels stable, risk-taking often increases.

What Long-Term Investors Can Do Today

This isn’t personal financial advice, but here are practical, common-sense ways long-term investors often respond to days like this:

Zoom out: A one-day drop (even a big one) can feel dramatic, but long-term goals usually matter more than short-term noise.
Watch position sizing: If one theme (like AI) has become too large in your portfolio, volatility can hit harder.
Follow fundamentals: For single stocks, focus on revenue, margins, cash flow, and guidance—not just headlines.
Expect headline whiplash: Tariff and policy stories can reverse quickly as new details emerge.

FAQs

1) Why did the Dow drop more than 800 points on Monday?

The briefing tied the decline to tariff uncertainty and concerns about heavy AI spending, which can pressure profits and increase uncertainty about future growth.

2) What does it mean when “stock futures” are up before the market opens?

Stock futures are contracts that trade before the regular session and can suggest how the market might open. On Feb. 24, 2026, futures pointed to a slightly higher open after Monday’s sell-off.

3) Why are tariffs such a big deal for investors?

Tariffs can raise costs for materials and imported goods, disrupt supply chains, and make corporate profits harder to forecast. That uncertainty often leads to bigger market swings.

4) What’s notable about the AMD and Meta AI deal?

The deal involves 6 gigawatts of AMD Instinct GPUs for Meta’s AI infrastructure and includes a performance-based warrant for up to 160 million AMD shares. Reports referenced in the briefing suggested the deal could be worth over $100 billion, though terms weren’t disclosed.

5) Why did Home Depot shares rise even though revenue fell versus last year?

Because results still beat expectations: revenue topped estimates, adjusted earnings per share came in above forecasts, and comparable store sales growth was stronger than projected. That combination can improve investor confidence.

6) How can the State of the Union affect the stock market?

Major policy signals about taxes, health care, energy, trade, and affordability can change expectations for certain industries and the overall economy. Even without immediate new laws, markets may move based on perceived direction and risk.

Conclusion: A Day Defined by Policy, Profits, and the Price of AI

As Feb. 24, 2026 begins, markets are working through a complicated mix: a sharp sell-off driven by tariff uncertainty and AI nerves, a powerful reminder of how large AI infrastructure spending has become, and fresh signals from both corporate earnings and national politics. Stock futures leaning higher suggests traders are trying to stabilize sentiment—but the day’s direction may still depend on how these stories develop in real time.

If there’s one simple takeaway, it’s this: today’s market isn’t reacting to just one headline. It’s reacting to how tariffs, technology spending, consumer demand, and policy priorities might collide in 2026.

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