FX.co ★ US Futures Slip as Chipmakers Drag

US stock index futures were lower on Tuesday, as another round of selling in semiconductor shares weighed on sentiment ahead of earnings from megacap technology companies and the Federal Reserve’s latest policy decision.

On Monday, the Dow Jones Industrial Average and the S&P 500 added 0.51% and 0.02%, respectively, while the tech-heavy Nasdaq Composite slipped 0.18%.

Chipmakers remained under pressure amid renewed worries that circular AI financing structures could unwind if hyperscalers rein in capital expenditures. Micron (-2.3%), Nvidia (-5%), Sandisk (-11%), AMD (-5.2%), and SK Hynix (-7.5%) all suffered sharp declines.

Investors are now looking to upcoming results from Amazon, Meta Platforms, and Microsoft later this week for clearer signals on hyperscaler spending plans, with Apple also set to report earnings.

Meanwhile, the Fed is widely expected to keep interest rates on hold at its Wednesday meeting, while futures markets continue to assign some probability to a rate hike in September.