Investing.com — U.S. futures were in a flat-to-low range in overnight trading Monday, as concerns about the Federal Reserve meeting largely offset artificial intelligence-driven optimism for the technology sector.
A rally in tech stocks helped fuel some gains on Wall Street on Monday, but most major tech stocks reversed course in aftermarket trading. Market darling NVIDIA Corporation (NASDAQ:) fell 1.7% despite announcing its latest line of highly anticipated AI chips, dubbed Blackwell.
By 19:06 ET (23:06 GMT), it fell 0.1% to 5,207.50 points and fell 0.3% to 18,181.25 points. It dropped slightly to 39,218.00 points.
Tech industries energize Wall Street, but Fed concerns remain
Wall Street indexes closed higher on Monday, buoyed by a rally in tech stocks, largely on hype around artificial intelligence. Alphabet Inc (NASDAQ:) soared 4.6% in the US after Bloomberg reported that the company is in talks with Apple Inc (NASDAQ:) to use Google's Gemini AI in its flagship iPhone. It became the top that pushed up the benchmark.
It rose 0.6% to 5,149.42 points and rose 0.8% to end at 16,103.45 points. It rose 0.2% to 38,790.43 points.
Wall Street was also buoyed by a 6% rise in Tesla Inc. (NASDAQ:) after the electric car maker announced it plans to raise prices on some European models. I did.
However, Tesla shares fell in post-market trading, with broad sentiment largely dampened by expectations for a decision that began Tuesday and is expected to be made Wednesday.
Markets were nervous about the possibility of a hawkish message from the central bank, given that U.S. inflation has remained largely subdued over the past three months. Still, the Fed is widely expected to keep interest rates on hold.
But the prospect of higher long-term interest rates means Wall Street's so far impressive rally will be put on a timer in 2024, especially if the Fed lowers its outlook for rate cuts this year.
Uncertainty surrounding the Fed has caused Wall Street to stick to its holding pattern for the past three sessions. The market was also awaiting a set of preliminary March figures to be released later in the week.
Chip makers sink after Nvida's new chip announcement
Semiconductor manufacturing stocks appear to have been overwhelmed by Nvidia's new chip announcement. The market darling fell 1.7% in aftermarket trading, rival Advanced Micro Devices Inc. (NASDAQ:) fell more than 2% and Intel Corporation (NASDAQ:) fell 0.4%.
Super Micro Computers (NASDAQ:), which makes AI-powered servers powered by Nvidia chips, fell 4%.
However, the design software company's stock price Synopsys Co., Ltd. (NASDAQ:) and ansis Inc (NASDAQ:) Inc each rose nearly 2% in aftermarket trading after NVIDIA announced a partnership with the two companies.
