U.S. stock futures were muted Wednesday evening, weighed by continued selling in the technology sector and uncertainty over the Federal Reserve’s rate path. S&P 500 Futures slipped to 6,411.25, while Nasdaq 100 Futures were flat at 23,323.50. Dow Jones Futures edged 0.1% lower to 44,973.0.
Losses in high-profile tech names dominated the session. The “Magnificent Seven” group of stocks fell between 0.1% and 2%, with Apple (AAPL) sliding nearly 2%, making it the weakest performer. Nvidia (NVDA) shed less than 1%, though its stock has already endured steep losses earlier this week.
A report from the Massachusetts Institute of Technology (MIT) added pressure by warning that 95% of firms investing in AI had seen “zero return” so far. The findings challenged Wall Street’s bullish narrative around artificial intelligence, which has been a key driver of tech valuations in 2025.
The timing is significant, arriving just a week before Nvidia’s highly anticipated earnings release, which could provide fresh insight into the commercial reality of AI adoption. Concerns of overvaluation were further amplified by OpenAI CEO Sam Altman, who recently cautioned that an AI bubble may be forming.
Fed Minutes Temper Optimism
Investor sentiment was also hit by hawkish undertones in the Federal Reserve’s July meeting minutes. The Fed signaled it would maintain a cautious stance on interest rates, prioritizing inflation control over short-term risks to the labor market.
Key takeaways included:
- A majority of Fed officials favored holding rates steady.
- Trade tariffs imposed by President Donald Trump remain an inflation concern.
- Markets trimmed bets on a September cut, with CME FedWatch now showing an 80.6% chance of a 25-basis-point reduction, down from 84.4% yesterday.
Wall Street closed lower Wednesday as a result:
- S&P 500: down 0.2% to 6,395.79
- NASDAQ Composite: down 0.7% to 21,172.86
- Dow Jones Industrial Average: flat at 44,938.06
Markets now await Fed Chair Jerome Powell’s speech at Jackson Hole on Friday, which could provide clearer guidance on monetary policy heading into September.
Retail Earnings Offer Mixed Picture
Outside technology and rates, corporate earnings offered modest relief. TJX Companies (TJX) and Lowe’s (LOW) reported better-than-expected results, but their gains were limited.
Meanwhile, Target (TGT) plunged nearly 7%, despite surpassing modest expectations. The retailer announced Michael Fiddelke as its new CEO, replacing long-serving chief Brian Cornell.
Attention now shifts to Walmart (WMT), set to release earnings Thursday. Given its scale, Walmart’s results are expected to serve as a crucial gauge of U.S. consumer health.