US equity futures are modestly higher. Asia equities closed mixed and European equity markets are trading lower. The dominant themes remain AI disruption and trade uncertainty. Software continues to be at the center of the selloff, while investors debate the potential impact of AI agents on intermediation-heavy business models. Trade policy is again in focus after President Trump shifted to alternative tariff authorities, warning of steeper measures for countries that “play games,”. Geopolitical risks are also building ahead of US-Iran talks later this week, with reports of a possible limited US strike adding to volatility in energy markets. Fed Governor Waller described a March rate decision as finely balanced pending further labor market data. Markets are also watching President Trump’s State of the Union address for potential signals on sector-specific tariffs and broader policy direction.

Companies Mentioned: Nvidia, DeepSeek, FedEx, Marsh