A trader works on the floor of the New York Stock Exchange on Aug. 4, 2022.<\/p>\n
Source: NYSE<\/p>\n
Stock futures were little changed in overnight trading Sunday following a losing week on Wall Street with the AI trade losing steam.<\/p>\n
Futures tied to the Dow Jones Industrial Average edged up 17 points. S&P 500 futures and Nasdaq 100 futures were both flat.<\/p>\n
U.S. stocks slipped last week as cracks appeared in a key pillar of the bull market rally \u2014 enthusiasm surrounding artificial intelligence buildout. Nvidia’s eye-popping\u00a0$100 billion partnership<\/a>\u00a0with OpenAI drew investor skepticism towards the sustainability of the business.<\/p>\n The S&P 500 fell 0.3% last week, its worst week since Aug. 1, and now sits 0.8% off its record high. The Nasdaq dropped 0.7%, also its weakest since early August. The Dow edged down 0.2%, its first loss in three weeks.<\/p>\n “The\u00a0narrative shifted modestly last week in a negative direction\u00a0as investors\u00a0questioned two key assumptions\u00a0underpinning the rally: the\u00a0sustainability of the AI infrastructure boom\u00a0and the\u00a0inevitability of an aggressive Fed easing cycle,” Adam Crisafulli, founder of Vital Knowledge, said in a note.<\/p>\n Weekly jobless claims came in lower than expected Thursday, while second-quarter GDP was revised up to 3.8%. The stronger data fueled concerns the Fed may be slower to cut rates, threatening one of the bulls’ key catalysts.<\/p>\n