U.S. stock futures held steady early Wednesday as investors expressed concern over the potential artificial intelligence (AI) bubble. The S&P 500 (SPX) ended its seven-day winning streak Tuesday, weighed down by a drop in Oracle’s (ORCL) shares. Futures on the Nasdaq 100 (NDX), the S&P 500, and the Dow Jones Industrial Average (DJIA) were up 0.21%, 0.16%, and 0.14%, respectively, at 4:36 a.m. EST on October 8.
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During Tuesday’s regular trading session, all three major averages finished in negative territory. The Dow Jones, the S&P 500, and the Nasdaq closed down 0.20%, 0.38%, and 0.67%, respectively. The ongoing U.S. government shutdown is also weighing on investor sentiment, which shows no immediate signs of resolution. This political uncertainty adds to market volatility and investor caution.
Oracle’s shares declined 2.5% yesterday following media reports that its AI cloud business is generating a gross profit margin below Wall Street’s expectations. This has increased concerns about whether the AI sector’s fast growth is sustainable.
Looking ahead, investors are eagerly anticipating Wednesday’s release of the latest Federal Reserve minutes, which may provide clues about the future path of monetary policy amid inflation and economic concerns.
There are no major earnings releases scheduled for today.
Meanwhile, the U.S. 10-year Treasury yield was down, floating near 4.10%. WTI crude oil futures were trending higher, hovering near $62.38 per barrel as of the last check. Additionally, the Gold Spot U.S. dollar price increased to nearly $4,037 per ounce on Wednesday, crossing the $4,000 per ounce mark for the first time in history. Investors are worried about global instability and economic uncertainty, leading to higher demand for gold as a safe-haven investment.
Elsewhere, European stocks opened slightly higher on October 8, despite ongoing political turmoil in France, supported by the rally in gold prices.
Asia-Pacific Markets Traded Mixed Today
Asia-Pacific markets traded mixed on Wednesday, with Chinese markets remaining closed for the Mid-Autumn Festival holiday.
Hong Kong’s Hang Seng index dropped 0.48%, while Japan’s Nikkei declined 0.45%, and the Topix gained 0.24%.
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