Stocks dipped below the flatline on Tuesday, signaling a pause in the November rally as investors awaited results from AI chipmaker Nvidia (NVDA) and the release of Federal Reserve minutes.
Futures on the S&P 500 (^GSPC) were down around 0.1%, after the stock gauge closed at its highest level since August. Dow Jones Industrial Average (^DJI) and Nasdaq 100 (^NDX) futures also fell roughly 0.1%.
Eyes are on Nvidia’s quarterly report for an update on the fundamentals behind the AI hype cycle, after the company’s stock finished at a record high on Monday. Expectations are high as the chip giant has become the face of the 2023 AI story, after its last earnings spurred a rally in stocks.
Meanwhile, the OpenAi drama is still at center stage after Microsoft’s (MSFT) CEO hinted he was open to Sam Altman rejoining the ChatGPT maker.
The tech giant’s shares edged up in Tuesday’s pre-market, after ending at a record high on Monday after it recruited the abruptly ousted OpenAI CEO. Wall Street saw the move as boosting its AI prospects, which could be buoyed if it ends up benefiting from a threatened exodus of OpenAI employees.
Investors are also watching for minutes from the Fed’s last rate-setting meeting, amid a debate over whether the rate-cut optimism that has powered the stock rally is overdone. In a holiday-shortened week light on economic data, the comments will be closely scrutinized for any hints to policymakers’ thinking.