20.08.202512:24:20UTC+00US Futures Trade in Narrow Range

On Wednesday, US stock futures exhibited limited movement, with the tech sector maintaining its significant decline from the previous day. This was as investors continued to evaluate the durability of the AI-driven rally, alongside examining retailer earnings results and considering the prospective trajectory of US interest rates. The major equity indices remained largely unchanged. Following steep losses, tech giants prompted renewed apprehensions regarding potential overvaluation in AI companies, supported by research suggesting that a majority of AI firms may not achieve profitability. Notably, Meta has already restructured its AI division. Retail earnings presented a mixed picture: Target's stock fell 10% in after-hours trading, following the announcement of a new CEO despite exceeding earnings expectations, while Estee Lauder dropped 11% due to a bleak outlook. Conversely, TJX and Lowe's each saw a 3% rise after their earnings reports. Walmart is set to release its report tomorrow. Additionally, the FOMC minutes are anticipated to reveal how policymakers are balancing labor market slowdowns against persistent inflation pressures.