US stock futures slipped on Wednesday as Wall Street navigated a second straight day of declines in the AI sector. Contracts on the Dow Jones Industrial Average and S&P 500 each fell 0.1%, while Nasdaq 100 futures remained nearly flat.
Cerebras Holdings dropped after the AI chip company reported its first earnings since going public, disappointing investors who See concerns about the firm’s ability to compete with Nvidia and other AI leaders. Separately, FedEx Corp. slipped following its quarterly report, citing shifting global trade policy as a headwind for business.
On Tuesday, broad market declines were led by memory chipmakers, with Nvidia, Micron Technology, and AMD all lower. Mounting concerns about elevated valuations in the AI space have pressured shares despite massive corporate investment in the sector.
With Micron’s own earnings report due after the close on Wednesday, investors are looking for clarity on the sustainability of the AI-driven rally. Micron’s stock has surged over 250% this year but fell 13% on Tuesday alone.
Geopolitical uncertainty also underpinned pressure on markets, as questions remain over the course of US-Iran negotiations and potential implications for shipments through the Strait of Hormuz, a critical chokepoint for global oil trade.