U.S. stock futures rose modestly after a sizable Friday rally driven by renewed rate-cut hopes from the Federal Reserve. The Dow hit a new all-time high while S&P 500 and Nasdaq approached record levels. The 10-year Treasury yield held near 4.256% after a Friday decline. The dollar eased versus the euro. Gold slipped slightly while U.S. and Brent oil prices ticked higher. Recent market gains followed a tech-led selloff amid growing doubts about AI's economic returns, including an MIT finding that 95% of AI pilot programs fail to produce significant returns. A comparison has been drawn between today’s AI frenzy and the 1990s dot-com bubble. Nvidia earnings this week and a chip-sale agreement involving Nvidia and AMD and a 15% federal cut on sales to China add further market focus.
Stock futures edged up on Sunday evening as Wall Street looks ahead to another big week that will feature earnings from AI chip leader Nvidia and another inflation update. Markets are coming off a monster rally on Friday, when Federal Reserve Chairman Jerome Powell opened the door to a rate cut next month. Futures tied to the Dow Jones Industrial Average rose 24 points, or 0.05%. S&P 500 futures were up 0.05%, and Nasdaq futures added 0.06%.
Friday's stock surge came after a big selloff that was led by tech giants, as doubts have grown about the AI boom and how much it will actually help companies. That's after a recent report from MIT found that 95% of AI pilot programs at businesses are failing to produce much of a return. Adding to those concerns were remarks from OpenAI CEO Sam Altman, who drew a parallel between today's AI frenzy and the 1990s dot-com bubble.
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