Futures Edge Higher as AI Turbulence Eases – Asia Market Wrap
US equity futures ticked up alongside Asian shares as recent selling linked to artificial-intelligence concerns showed signs of cooling. Precious metals also recovered.
S&P 500 futures advanced 0.2% after the cash index swung between gains and losses Tuesday before finishing 0.1% higher. Nasdaq 100 contracts climbed 0.3%. European markets were poised for a firmer start. In Asia, stocks snapped a three-day losing streak, though exchanges in China, Hong Kong and several other markets remained shut for the Lunar New Year break.
The dollar strengthened against its Group-of-10 counterparts, with the New Zealand dollar posting the steepest drop after investors scaled back expectations for additional rate increases when the central bank left policy unchanged.
Following months of rallies powered by enthusiasm around AI, equity markets have grown choppier as investors weigh disruption risks against skepticism that massive capital outlays will generate near-term returns. The issue carries particular weight in Asia, a hub for semiconductor design and electronics manufacturing, where benchmarks have outperformed US and European peers this year.
Attention is also shifting to the Federal Reserve for clues on the outlook for borrowing costs. Minutes from the Jan. 27–28 meeting — when policymakers opted to keep rates unchanged — are scheduled for release later Wednesday. The update comes after firm employment figures and moderate inflation data helped shape expectations for future policy moves.
Federal Reserve Governor Michael Barr said Tuesday that rates should stay unchanged “for some time” until there is clearer evidence inflation is moving toward the 2% objective. Chicago Fed President Austan Goolsbee noted that additional reductions could be possible this year if price pressures continue to ease toward that target.
