HomeFinancial MarketsFutures Slip, Led by Chip Declines

Futures Slip, Led by Chip Declines

Futures slipped lower on Wednesday as tech stocks faced mounting pressure concerning further potential cutbacks on AI chip imports. In addition, investors braced themselves for Federal Reserve Chair Jerome Powell’s speech later in the day.

Contracts listed on the tech-heavy Nasdaq Composite Index declined by 0.4%, while those on the S&P 500 fell 0.3% lower. Futures on the Dow Jones Industrial Average edged lower by just 0.2%.

Leading the losses among chip-related stocks were Nvidia (NVDA) and Advanced Micro Devices (AMD). Both stocks tanked by more than 3% during premarket trading following a report from the Wall Street Journal that the U.S. may consider imposing further limits on chip exports to China.

Investor focus has since turned to Fed Chair Jerome Powell, who is slated to speak at an ECB forum later in the day. Following the release of robust U.S. economic data on Tuesday, Powell’s remarks are expected to provide further insight into the central bank’s actions regarding its monetary policy going forward. Currently, the market expectation is that further interest rate hikes are to come.

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