U.S. stock futures were largely unchanged Monday evening as investors weighed mounting interest-rate-hike expectations against deepening concerns that the AI spending boom may be losing momentum.
S&P 500 futures rose 0.04% to 7,695.50 points by 19:22 ET, while Nasdaq 100 futures gained 0.02% to 29,456.50. The Dow Jones index was flat at 52,879.0 points. In the Semiconductor Sector Index (SOX), however, shares tumbled more than 5% — the day's most consequential move.
Chipmakers bore the brunt of the selloff after prominent AI figures and tech executives called for a slowdown in artificial-intelligence development, citing safety risks. The expectation that the industry may scale back its pace threatens billions in capital expenditure that have powered a multi-year rally in semiconductor and data-center stocks, and weighed heavily on sector sentiment throughout the session.
Software names, by contrast, advanced as investors rotated out of the hardware side of AI and into companies that appear less exposed to disruption from any AI-related deceleration.
On the monetary-policy front, markets are pricing in a growing conviction that the Federal Reserve will raise interest rates by 25 basis points at its meeting later in the week. Data showing persistent inflation has reinforced bets that the central bank will move to tighten rather than hold steady.
The policy outlook drew political friction. President Donald Trump publicly opposed calls to regulate AI and spoke with Nvidia CEO Jensen Huang about the issue, while simultaneously pressing the Fed for lower rates to support economic growth — placing him at odds with the direction of central-bank policy.
In commodity markets, oil prices remained elevated but gave up some intraday gains after Iran signaled it would coordinate with Oman on reopening the Strait of Hormuz, a key global shipping chokepoint. Meanwhile, hostilities between Yemen's Houthi rebels and Saudi Arabia escalated along the Bab al-Mandab strait, adding further risk premium to energy supplies.
InvestingPro's ProPicks AI tool highlighted Super Micro Computer, up 185%, and AppLovin, up 157%, among its historical past winners in the AI-focused screening.
