US technology shares will be the focus Tuesday as global markets watch to see if the US AI stock trade continues to unravel. The Nasdaq dropped 3 percent and the S&P 500 lost 1.5 percent on Monday after Chinese AI company DeepSeek unveiled its new chatbot, which appeared to call into question the business model and sky-high valuations of Nvidia and other US AI champions.

Federal Reserve officials beginning their two-day policy meeting on Tuesday will no doubt be watching closely to see how the tech stock selloff affects financial conditions and the economic outlook. Presumably if the losses persist on Tuesday, it will make rate cuts more likely than seemed to be the case as recently as Sunday, if not with Wednesday's plicy announcement then later in the year.

In economic data, focus will be on US durable goods orders due at 8:30 am ET and consumer confidence at 10:00 am ET. Durables are expected up 0.8 percent and up 0.4 percent ex-transportation on the month in December. Consumer confidence is seen at 106.3 in January, up from 104.7 in December.

Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.

Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.