Nervous Waiting in the Markets: Artificial Intelligence Stocks Are Rising

Investors Are Concerned

U.S. stock futures fluctuated underneath after investors eased concerns over high artificial intelligence valuations and felt hopeful from President Donald Trump's signals of a possible retreat on tariffs during a Supreme Court hearing.

S&P 500 and Dow Jones Industrial Average futures remained close to flat, while Nasdaq 100 futures fell by 0.1%.

In the markets, skepticism from several Supreme Court justices regarding the legality of Trump's broad trade tariffs was taken into account. An unfavorable ruling on this policy could have a significant impact on international trade and local spending by retracting the tariffs.

Meanwhile, AI-related stocks rebounded after a sharp pullback earlier in the week. Advanced Micro Devices (AMD) saw an increase of over 2% after surpassing Wall Street expectations with its third-quarter earnings, lifting other chip companies like Broadcom (AVGO) and Micron Technology (MU), which rose by 2% and 9%, respectively.

This rebound in AI stocks helped lift the broader market following a weak start to the week; however, fears of an AI bubble have not completely subsided as AI spending remains at high levels.

Earnings season continues to be in focus, with reports from companies like WBD, Airbnb (ABNB), and biotechnology company Moderna (MRNA) set to be released on Thursday. Additionally, investors will also track the results of the Tesla (TSLA) shareholder meeting at 4:00 PM ET, where discussions around Elon Musk's proposed trillion-dollar compensation package are expected.