U.S. stock futures mixed amid AI concerns

Dow futures had risen by 143 points, or 0.3%, S&P 500 futures had slid by 9 points, or 0.1%, and Nasdaq 100 futures had dropped by 233 points, or 0.8%

U.S. stock futures sought direction on Tuesday, as artificial intelligence-related concerns weighed on chipmakers ahead of key megacap technology earnings and an upcoming U.S. central bank policy decision this week.

By 09:59 GMT, Dow futures had risen by 143 points, or 0.3%, S&P 500 futures had slid by 9 points, or 0.1%, and Nasdaq 100 futures had dropped by 233 points, or 0.8%.

Asian stock markets declined sharply on Tuesday with KOSPI plunging more than 10%, and Nikkei 225 slipping almost 4%.

Samsung Electronics and SK Hynix shares closed around 14% lower each.

Nvidia dropped around 5% on Monday as its latest AI-related financing commitments exceeded $750 billion, raising concerns about AI infrastructure spending.

Investors are now focused on quarterly results from Microsoft, Meta Platforms, Apple and Amazon later this week, with the reports expected to provide new insight into artificial intelligence spending and whether heavy investments in AI infrastructure are translating into earnings growth.

Last week’s results from Tesla and Alphabet had raised concerns after both companies highlighted higher AI-related spending.

The U.S. central bank also begins its two-day policy meeting on Tuesday, with its interest rate decision due on Wednesday.

Markets broadly expect the central bank to leave interest rates unchanged on Wednesday. However, traders have increased bets that policymakers could resume tightening later this year, with markets pricing roughly a 38% chance of a rate hike this week and an 80% probability of a September increase, according to the CME FedWatch tool.

Oil prices dropped sharply on Monday and extended losses on Tuesday, after Iran and U.S. maintained a pause in hostilities over the weekend.

The U.S. president said on Monday the U.S. was holding “good talks” with Iran and that there was a chance of reaching an agreement to end months of conflict.