Stock futures fell Tuesday as traders took in the latest announcements from Nvidia’s artificial intelligence conference. Wall Street also turned its eyes to Washington as the Federal Reserve kicked off its two-day policy meeting. Futures tied to the S&P 500 slipped 0.4%, while Dow Jones Industrial Average futures slid 46 points, or 0.1%. Nasdaq-100 futures were 0.7% lower. The S&P 500 broke a three-session slump on Monday. Chip darling Nvidia pulled back roughly 2.3% in premarket trading, as investors evaluate the news from its first-ever GTC Conference. CEO Jensen Huang unveiled Nvidia’s latest AI chip, labeled Blackwell, which he touted as a significantly more powerful successor to its chips that power a multitude of AI operations. That said, the stock had rallied more than 78% year to date heading into the event, possibly enticing investors to book some profits following the news. Super Micro Computer, a primary vendor for building out Nvidia’s AI servers, dropped more than 9% on news of a share offering. Shares have ripped more than 250% higher this year on AI enthusiasm, leading the stock to be added to the S&P 500 on Monday. Wall Street is also awaiting guidance on the path forward for monetary policy as the Federal Reserve begins its two-day policy meeting on Tuesday. A recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected. However, fed funds futures currently forecast a 99% likelihood that the Fed will leave benchmark interest rates unchanged this week, according to the CME FedWatch Tool. “The Fed is going to be taking a lot of the oxygen out of the room this week as they conclude their March meeting on Wednesday afternoon,” said Sam Millete, director of fixed income at Commonwealth Financial Network. “It’s going to be a really interesting meeting because markets don’t expect any interest rate changes at this meeting, and in fact, don’t have any changes priced into the next meeting either.” U.S. Treasury yields were slightly lower Tuesday ahead of the Federal Reserve’s meeting, which investors are hoping will provide fresh insights into policymakers’ expectations for the economy. The yield on the 10-year Treasury yield was down 2.6 basis points at 4.314%. The 2-year Treasury yield was last at 4.713% after dipping around 2 basis points. Japan’s Nikkei 225 index ended above 40,000 on Tuesday after the country’s central bank raised interest rates for the first time since 2007. The Bank of Japan officially ended its negative interest rate policy, hiking rates for the first time in 17 years to 0% to 0.1% from -0.1% . The bank also abolished its yield curve control policy, marking a historic shift in policy. Japan’s Nikkei 225 whipsawed following the news but ended the day 0.66% higher at 40,003.60. The broader Topix closed 1.06% higher at 2,750.97. In another monetary policy meeting, the Reserve Bank of Australia held its benchmark rate at 4.35% for the third meeting in a row. The S&P/ASX 200 closed 0.36% up at 7,7703.20 after the decision, extending gains from Monday. South Korea’s Kospi fell 1.10% to close at 2,656.17, while the small-cap Kosdaq inched 0.29% lower to end at 891.91. Hong Kong’s Hang Seng index slid 1.13%, and the mainland Chinese CSI 300 closed 0.72% lower at 3,577.63. Oil prices edged down early on Tuesday after gaining in the previous trading session, due in part to the prospect of rising supply from Russia as well as the possibility of slower-than-expected downstream demand in sectors such as jet fuel. The Brent crude oil futures contract for May delivery slipped 16 cents to $86.73 a barrel as at 0300 GMT, whereas that for U.S. West Texas Intermediate (WTI) fell 13 cents to $82.03. The WTI April contract, with expires tomorrow, fell 16 cents to $82.56. Gold prices drifted lower on Tuesday as the U.S. dollar firmed, while investors await remarks from U.S. Federal Reserve Chair Jerome Powell scheduled after the central bank’s policy meeting wraps up on Wednesday for more clarity on interest rate cut moves. Spot gold fell 0.3% at $2,153.60 per ounce, hovering near its lowest levels in a week hit on Monday. U.S. gold futures eased 0.3% at $2,157.30. The dollar gained 0.5% and hit a more than two-week high, making gold more expensive for other currency holders.
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