Faltering AI Trade Weighs on Wall Street as Fed Decision Looms

Wall Street futures were mixed on Wednesday as investors weighed whether the Federal Reserve's decision and Big Tech earnings could restore confidence in the faltering AI trade.

The S&P 500 futures rose 0.26%, while Nasdaq 100 futures gained 0.20%. Dow futures, however, plunged 109 points.

Chip stocks remained uneven after a brutal Asian sell-off, and oil prices climbed on renewed Middle East tension, which could lift inflation expectations, Treasury yields, and the discount rate applied to growth stocks.

The Fed's decision at 2 pm ET is the day's main risk, with markets still favoring no change but assigning a 35.1% chance to a quarter-point increase.