Stock market today: Dow, S&P 500, Nasdaq futures retreat ahead of Fed meeting amid AI safety fears
US stock futures edged lower on Tuesday morning as investors braced for the Federal Reserve’s interest rate decision on Wednesday and monitored the fallout from Anthropic CEO Dario Amodei’s essay on AI safety fears.
Futures on the Dow Jones Industrial Average (YM=F) led the downside, falling 0.6%, while futures on the S&P 500 (ES=F) and Nasdaq-100 (NQ=F) both fell 0.5%.
Oil prices were steady, with Brent crude (BZ=F) and WTI crude (CL=F) changing hands at $102 and $103 per barrel, respectively. Prices have remained elevated since Saudi Arabia shuttered its East-West pipeline and the Iranian-backed Houthis launched fresh attacks in the Middle East.
Bond yields have also shot up as investors await the next Fed policy decision. On Monday, the 10-year Treasury yield briefly hit 5%, its highest intraday level since 2023. While the 10-year yield ultimately moved lower again, it underscored rising borrowing costs amid concerns about government spending and inflation.
The Federal Open Market Committee is scheduled to begin its September meeting on Tuesday, and traders overwhelmingly expect a rate hike. The release of the so-called dot-plot, along with Fed Chairman Kevin Warsh’s press conference, could offer investors clues about the prevailing winds of the Fed’s monetary policy.
There’s little in the way of economic data and earnings releases, with Forgent Power Solutions (FPS) and Vera Bradley (VRA) reporting results.
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