Market Caution Precedes Fed Meeting as Yen Sees Shift in Sentiment

The market is showing signs of caution ahead of the upcoming Federal Reserve meeting on Wednesday. Equity index futures are declining, particularly in the tech-heavy Nasdaq 100, which fell by 1.8% last week to 29,368.

Nvidia shares finished unchanged from Friday's close, while AMD and Intel saw gains of 2.5% and 2.6%, respectively. However, traders expect losses today following the weekend updates on safety measures from Anthropic's CEO and OpenAI's Altman, which stated that the startup will not go public this year.

The US dollar index has reached the 99s due to improved Fed rate hike likelihoods, with the EUR/USD sliding into the 1.15s and GBP/USD nearing a break below 1.36. The yen is also experiencing a shift in sentiment, with CoT speculators shifting to net long positions.