Tech giants push AI investments forward as Fed policy stirs uncertainties

Despite the ongoing uncertainty about the future policies of the Federal Reserve, the US stock market remained in a waiting stance before the market opened. In particular, technology stocks were once again facing strong drivers in the AI sector. Futures on the Dow Jones Industrial Average rose slightly by 0.1%, while both the S&P 500 and the tech-driven Nasdaq 100 hovered around the zero mark. The stock exchanges recorded losses for the second consecutive day, ending a previously record-breaking rally driven by an interest rate cut and euphoria over artificial intelligence. Cautious remarks from Fed Chairman Jerome Powell, combined with comments from other central bank members, caused renewed uncertainty, making imminent rate cuts questionable. Meanwhile, the technology sector continues its rapid investments in artificial intelligence. Alibaba announced plans to invest more than $50 billion in AI. Intel has reportedly contacted Apple to secure a possible investment. Nvidia surprised with a $100 billion partnership with OpenAI and announced its own $5 billion commitment to Intel. Market participants are now focusing on the upcoming release of Costco's earnings numbers, expected on Thursday. Analysts anticipate an increase in sales figures as consumers look for attractive deals amid economic uncertainties. However, the main focus of the markets is on Friday, when the Fed's preferred inflation indicator, the Personal Consumption Expenditures Index, will be released. While Fed officials are concerned about a slowdown in the labor market, investors fear that too rapid a price increase could force the central bank to rethink its monetary easing policies.