As investors anticipated the publication of Federal Reserve minutes and earnings from AI chipmaker Nvidia (NVDA), stocks dropped below the flatline on Tuesday, indicating a slowdown in the November rise.
The S&P 500 (^GSPC) futures were down by 0.1% following the closing of the stock gauge at its highest point since August. Futures for the Nasdaq 100 (^NDX) and the Dow Jones Industrial Average (^DJI) both decreased by about 0.1%.
With Nvidia’s stock closing at a record high on Monday, all eyes are on the company’s quarterly report for an update on the fundamentals underlying the AI hype cycle. A surge in equities following its last earnings has made the chip giant the face of the 2023 AI narrative, so expectations are high.
As for the OpenAi drama, it remains front and centre after Microsoft CEO Sam Altman stated that he may be open to returning to the company that makes ChatGPT.
After closing at a record high on Monday following the hiring of the unexpectedly fired CEO of OpenAI, the tech giant’s shares increased slightly in Tuesday’s pre-market trading. Wall Street viewed the move as improving its chances in the AI space, which might be strengthened if it ends up reaping the rewards of a threatened employee exodus from OpenAI.
Amidst a dispute about whether the rate-cutting optimism that has propelled the market surge is exaggerated, investors are also keeping an eye on the minutes from the Fed’s most recent rate-setting meeting. During a week with fewer holidays and less economic data, the comments will be carefully examined for clues about the thoughts of policymakers.