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AI Anxiety and Metal Mayhem Shake U.S. Markets

U.S. stock futures stumbled as renewed doubts about the sustainability of the artificial‑intelligence boom rippled through financial markets. Tech-heavy benchmarks led the decline, with Nasdaq futures sliding and the S&P 500 also moving lower as investors reassessed whether AI-linked valuations have run too far, too fast. The unease wasn’t limited to equities. Precious metals experienced dramatic intraday swings, with gold and silver both whipsawing after a period of rapid gains. Traders pointed to shifting expectations around interest rates and safe‑haven demand as key drivers behind the volatility. The combination of tech-sector skepticism and commodity turbulence has created a tense backdrop for markets. While some investors see the pullback as a healthy reset, others worry it may signal deeper concerns about the durability of the recent rally. Markets now look ahead to upcoming economic data and corporate earnings for clearer direction.
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US Futures Fall as Rate-Cut Bets Get a Reality Check

 


US stock futures fell on Wednesday, signaling no let-up in a rough January. Investors’ optimism for interest rate cuts got a reality check, and worries about China’s economy grew. Dow Jones Industrial Average ( ^DJI) futures fell 0.4%, while S&P 500 ( ^GSPC) futures slid 0.4%, set to build on Tuesday’s losing start to the holiday-shortened week. 

Futures on the tech-heavy Nasdaq 100 ( ^NDX) were down roughly 0.5%. Stocks have struggled as policymakers push back against persistent bets that central banks will cut rates early and often in 2024. ECB president Christine Lagarde on Wednesday joined the likes of Federal Reserve Governor Chris Waller in warning that expectations of imminent loosening are too high. Another knockback came from disappointing GDP data suggesting that China’s growth is flagging despite stimulus measures. 

Oil prices fell amid fears of a pullback in demand from the world’s second biggest economy. Hopes now rest on quarterly earnings, with the season set to pick up pace, and the release of the December retail sales report later Wednesday. 

Fed officials have been keen to stress that their policy decision making will be driven by incoming economic data. Regional bank fourth-quarter results are in focus in the morning after earnings from Wall Street’s big lenders got a mixed reception.

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