AI Stocks Steady as Investors Await Fed Rate Decision

Wall Street's AI stocks have steadied somewhat after a global decline on Monday. The S&P 500 slipped 0.2% and the Dow Jones Industrial Average was down 289 points, or 0.6%, as investors await the Federal Reserve's interest rate decision on Wednesday.

The Fed is expected to raise the federal funds rate for the first time in three years to combat high inflation above 3%. However, this move could inflict short-term pain by making borrowing more expensive for households and businesses.

Nvidia rose 1.1% after a 3.4% drop on Monday, while Advanced Micro Devices climbed 2.4%, both recovering from the AI industry's call to slow down development due to safety concerns.