US stock futures slipped as Wall Street digested a second straight tough day for the AI trade.
Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) fell 0.1%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) hugged the flatline.
After the bell, AI chip company Cerebras reported its first earnings since going public. Shares of the company dropped as investors bristled at results suggesting it could face challenges in taking on chip giants like Nvidia (NVDA).
FedEx (FDX) also dipped after it reported earnings. The company, which is often watched as a bellwether of the broader economy, cited shifting trade policy as a major headwind.
During the day on Tuesday, stocks mostly fell as memory chipmakers sold off, with Nvidia, Micron (MU) and AMD (AMD) leading the way down. Worries on Wall Street are growing about stretched AI valuations amid massive investment in the sector.
Micron's earnings are due after the bell on Wednesday, and its results will be closely watched as Wall Street assesses just how much faith to put in AI. The stock has been on a tear this year, rising more than 250%, but shares dipped 13% on Tuesday.
Meanwhile, uncertainty persists over US-Iran talks and where key issues might ultimately land. While President Trump had pledged the Strait of Hormuz would remain free of tolls, Iran and Oman have started discussing a system to charge fees.
