The S&P 500 and Nasdaq futures gained on Monday ahead of the Federal Reserve's meeting this week, where it is expected to maintain borrowing costs constant and deliver monetary policy indications this year.
With stronger-than-expected inflation, opens new tab numbers last week, traders are rethinking when and how much policymakers will decrease rates this year, with CME FedWatch Tool bets of a June rate cut falling to 57% from 71% last Monday.
Wall Street reached new all-time highs in March on AI euphoria before retreating this week. A hawkish Fed policy meeting on Wednesday might further hurt high-flying markets.
"While the recent tech stock pullback may reflect fears that the market has run too far and portfolios are too concentrated, we believe investors can find compelling diversification opportunities through the next AI leaders," said UBS Global Wealth Management chief investment officer Mark Haefele. Investors watched Nvidia's (NVDA.O), opens new tab GTC developer conference from March 18 to 21 for AI announcements. AI giant shares climbed 2.1% premarket.
Peers including Micron Technology (MU.O) and Advanced Micro Devices (AMD.O) added 2.6% and 1.2%, respectively. Dow e-minis fell 6 points, or 0.02%, S&P 500 e-minis rose 17.5 points, or 0.34%, and Nasdaq 100 e-minis rose 117.5 points, or 0.65%, at 5:30 a.m. ET. Most megacap growth and tech stocks rose before the bell.
Alphabet (GOOGL.O) gained 3.1% after media reported that Apple (AAPL.O) is in discussions to incorporate Google's Gemini AI engine into the iPhone.
On March 22, Tesla (TSLA.O) announced a 3.3% price increase for its Model Y EVs in various European nations, totaling 2,000 euros ($2,177) or local currency equivalents.
Xpeng's U.S.-listed shares rose 7.0% on plans to introduce a cheaper EV brand amid severe price competition. Boeing (BA.N) opens new tab lost 1.1% amid media reports that a Seattle federal grand jury subpoenaed the planemaker over the Jan. 5 airborne accident.
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