Stock market today: US futures retreat in countdown to Fed meeting

US stock futures pulled back on Tuesday from a rebound, as investors marked time waiting for a crucial Federal Reserve policy meeting to kick off.

S&P 500 (^GSPC) futures slid roughly 0.4%, while those on the Dow Jones Industrial Average (^DJI) fell 0.2%, coming off a winning day for the major gauges. Futures on the tech-heavy Nasdaq 100 (^NDX) dropped about 0.6% as Nvidia (NVDA) shares retreated in the wake of AI updates from its annual developer conference.

Attention is firmly on the Fed’s two-day meeting beginning later Tuesday morning, seen as a test for stocks bruised by recent inflation surprises that undermined bets on interest-rate cuts coming soon.

With policymakers widely expected to keep rates at their historic highs, the focus is on the “dot plot” for any clues to the number and timing of any cuts this year. The central bank’s policy decision is due Wednesday at 2 p.m. ET.

Meanwhile, the Bank of Japan ended its era of negative rates with its first hike in 17 years, making a splash in a week packed with central bank decisions.

In cryptocurrencies, bitcoin (BTC-USD) continued to pull back from its recent record high, falling over 7% to hover just above $63,000, on track for its biggest one-day loss in two weeks. Shares of crypto-linked companies Coinbase (COIN) and Marathon Digital (MARA) lost ground alongside the token.

On the corporate front, shares of Unilever (UL) popped after the Ben & Jerry’s maker said it would cut jobs and spin off its ice cream unit.

Live2 updates

  • The bottom line on Nvidia

    Nvidia’s (NVDA) stock didn’t do too much on day one of its GTC conference despite an impressive array of new product introductions.

    But that doesn’t mean what the company unveiled was disappointing — quite the contrary! I actually think everything CEO Jensen Huang showed off is so complex, it could take a few days for investors to digest and assess if the stock warrants another push higher.

    Wall Street was pleased with what they heard.

    Here’s what JPMorgan analyst Harlan Sur had to say:

    “Overall, the team is further distancing itself with its aggressive cadence of new product launches and more product segmentation over time. With leading silicon (GPU/DPU/CPU), hardware/software platforms, and a strong ecosystem, Nvidia is well positioned to continue to benefit from major secular trends in AI, high-performance computing, gaming, and autonomous vehicles, in our view. Bottom line: NVIDIA continues to be 1-2 steps ahead of its competitors.”

  • The AI stock bubble…or not

    As Nvidia’s (NVDA) GTC conference continues out on the West Coast, it feels natural for BofA’s new fund manager survey out today to weigh into the AI stock bubble debate.

    The end result: institutional investors have no clue if this is a bubble!

    AI stock bubble

    Investors can’t decide whether AI stocks are in a bubble.