US stock futures were mostly flat after a sharp rally on Wall Street Monday, led by technology and AI stocks. Traders are now focused on oil prices, Fed interest rate signals, Trump's speech at the United Nations, and Alibaba’s new AI chips release.
Dow Jones futures were down by 25 points or 0.1% at 3:09 AM ET (7:09 GMT), while futures linked to S&P 500 and NASDAQ 100 were largely steady.
This followed the S&P 500's strongest performance since August on Monday. AI-related stocks were among the gains, along with traders’ interest in US bond yields and the Middle East.
Technology stocks led the rally on Monday. Meta Platforms stock advanced after its new AI model, bringing back interest in using AI agents for consumers. Additionally, shares of chipmakers like AMD and Intel rose as investors focused on companies involved in processing AI technologies.
The US 10-year Treasury yield fell slightly on Tuesday.
Oil remained a key concern for markets, with Brent crude moving above USD 100 a barrel. Brent futures were up about 1% at USD 101.36, as investors assessed risks to energy supplies from tensions in the Middle East.
The focus also remained on President Donald Trump’s planned address to the United Nations General Assembly in New York. His speech is expected to cover international security, conflicts in the Middle East and Ukraine, and artificial intelligence safety.
Also Read: Wall Street Futures Climb Ahead of Trump-Xi Summit as Oil Retreats
Federal Reserve rate hike concerns added another layer of uncertainty. St. Louis Federal Reserve President Alberto Musalem said the central bank may need to raise interest rates again as higher energy prices add to inflation pressures.
The Federal Reserve raised interest rates by 25 basis points last week. Updated projections and comments from Fed Chair Kevin Warsh also pointed to the possibility of another rate increase before the end of 2026.
Alibaba unveiled its new Zhenwu V900 AI accelerator at its annual Apsara Conference in Hangzhou. CEO Eddie Wu said the chip delivers three times the performance of its predecessor, the Zhenwu M890.
Alibaba said the V900 can be used in clusters of up to 500,000 chips for training advanced AI models.