Wall Street Slides Amid Oil Price Surge, Rising Treasury Yields
US stock index futures declined on Tuesday as rising oil prices and Treasury yields compounded anxiety over AI demand. The uncertainty stems from calls by top AI companies to slow down development due to safety concerns.
The tech sector was particularly affected, with Alphabet and Microsoft each down around 1% premarket. Chipmakers, which bore the brunt of Monday's selloff, traded within a narrow range.
Nvidia rose marginally as the chipmaker fared better than its peers. However, the overall market sentiment remains cautious ahead of the Federal Reserve's interest rate decision on Wednesday.
The Fed is expected to raise rates, with traders pricing in a 92.5% chance of a hike. The move would be the first in a series of increases, according to Anthony Saglimbene, chief market strategist at Ameriprise Financial.