Stock futures hold near flat as traders await Wednesday Fed rate decision

  • U.S. stock futures steadied Tuesday after semiconductor shares drove Monday’s market decline.
  • Nvidia fell 3.4%, Micron dropped 5.3%, and Intel declined 5.6% during Monday trading.
  • Fed funds futures reflected roughly a 92% chance of a 25-basis-point Wednesday rate increase.

U.S. stock futures were little changed Tuesday after major averages fell in the previous session, as semiconductor stocks came under pressure amid heightened concerns about the safety of increasingly capable artificial-intelligence models. The Nasdaq Composite declined 0.56% Monday, while the S&P 500 and Dow fell 0.48% and 0.29%, respectively. Nvidia dropped 3.4%, Micron fell 5.3%, Sandisk lost 5%, AMD declined 4.4% and Intel slid 5.6%. Anthropic CEO Dario Amodei called for a slower pace of AI development, a view supported by OpenAI CEO Sam Altman and xAI CEO Elon Musk. Investors also monitored higher oil prices and Treasury yields ahead of an expected Federal Reserve rate increase Wednesday. Fed funds futures imply roughly a 92% probability of a 25-basis-point hike, which would lift the target range from 3.5% to 3.75%.

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