U.S. equity futures edged slightly lower on Tuesday morning as investor confidence was tempered by the protracted federal government shutdown, which muted the enthusiasm surrounding a string of recent developments in artificial intelligence.
As of 04:50 P.M. (GMT+7), Dow Jones futures declined 60 points, or 0.13%, to 46,635 points while S&P 500 futures slipped 2.20 points, down 0.03%, to 6,738.10 points. Nasdaq 100 futures also fell into the negative territory, decreasing by 1.60 points, or 0.01% to 24,977 points.
The move followed a strong session where both the S&P 500 and the Nasdaq Composite set new all-time closing highs—buoyed in part by the landmark agreement between Advanced Micro Devices (AMD) and OpenAI.
Under the terms, AMD will supply AI chips to OpenAI in exchange for ChatGPT creator acquiring 160 million warrants of the chipmaker’s common stock. The deal, projected to generate tens of billions in annual revenue, helped lift AMD’s shares by 23.7% and fueled a 2.9% gain in the Philadelphia Semiconductor Index.
Nevertheless, the broader economic environment remains challenging as the nearly week-long government shutdown has led to significant delays in key economic data releases. The lack of official data is complicating assessments for both investors and Federal Reserve policymakers as they attempt to navigate the future trajectory of U.S. interest rates. Market participants and officials have been forced to rely on alternative, often privately-sourced, datasets.
Some economic indicators, such as a survey on consumer expectations from the New York Fed, are still scheduled for release during the shutdown. Several Fed officials are also expected to deliver public remarks, but analysts anticipate their comments may have less impact in the absence of critical fresh data.
