U.S. stock futures were little changed on Wednesday, stabilizing after the previous session’s selloff as traders weighed the latest developments in the artificial intelligence (AI) sector against a backdrop of economic and political uncertainty. Growing concerns over the U.S. government shutdown and fragile economic data spurred a rush into safe-haven assets, pushing gold above $4,000 per ounce for the first time ever. Investors are now focused on the Federal Reserve’s upcoming meeting minutes, while reports surfaced that Nvidia (NASDAQ:NVDA) is investing in xAI’s $20 billion funding round.
Futures Edge Higher After Wall Street Retreat
U.S. equity futures posted modest gains early Wednesday. By 03:48 ET, S&P 500 futures were up 8 points (0.1%), Nasdaq 100 futures rose 38 points (0.2%), and Dow Jones futures added 60 points (0.1%).
The mild rebound followed a pullback on Tuesday, when the S&P 500 slipped 0.4%, the Nasdaq Composite fell 0.7%, and the Dow Jones Industrial Average edged down 0.2%.
Oracle (NYSE:ORCL) led declines after The Information reported that margins in its AI cloud business were being squeezed more than expected by soaring technology costs. The company’s stock had previously rallied on optimism it would benefit from the AI boom.
Still, momentum in the AI space remained intact. AMD (NASDAQ:AMD) extended gains after unveiling a new partnership with OpenAI, while IBM (NYSE:IBM) advanced on news of a tie-up with Anthropic, and Dell (NYSE:DELL) rallied after raising its long-term guidance on strong AI-related demand.
With the federal government shutdown delaying key economic data releases, investors have turned to private surveys for clues about economic conditions. A New York Fed survey earlier this week showed weaker business expectations and rising inflation projections, further muddying the outlook.
Gold Breaks Record, Surging Above $4,000 per Ounce
Gold prices skyrocketed past $4,000 per ounce, a new all-time high, as both institutional and retail investors poured into the metal amid political upheaval and uncertainty in global markets.
The rally, which has seen gold jump more than 50% year-to-date, marks its strongest annual performance since 1979.
Analysts pointed to the U.S. government shutdown and a decline in confidence toward other traditional safe-haven assets — including the U.S. dollar and Treasuries — as major catalysts. Expectations for additional Fed rate cuts and worries about U.S. fiscal health have also strengthened demand.
The Japanese yen weakened after Japan’s ruling Liberal Democratic Party elected a new dovish leader, while political instability in France, following the surprise resignation of its prime minister, added another layer of global risk.
According to ING analysts, exchange-traded funds have expanded their gold holdings amid growing speculation of more Fed easing. Central banks — led by the People’s Bank of China — have also continued to accumulate gold, extending their buying streak for an 11th consecutive month in September despite record prices.
Fed Minutes Take Center Stage
Investors are now awaiting the release of the Federal Open Market Committee (FOMC) minutes later Wednesday, hoping for insights into the central bank’s thinking during its September policy meeting.
At that meeting, the Fed cut interest rates by 25 basis points, resuming an easing cycle that had been paused since December. Officials signaled the likelihood of further cuts at the October (28–29) and December meetings, emphasizing the need to support a softening labor market even as inflation remains persistent.
“The Fed minutes in aggregate should echo the incrementally dovish shift in bias” from the September meeting and “probably reflect deep divisions too, as some officials push for a fairly aggressive rate cutting campaign while others prefer to limit the easing to 1–2 reductions given persistent inflation challenges and an employment situation that remains decent on an absolute basis,” said analysts at Vital Knowledge.
While several Fed officials are scheduled to speak this week, analysts suggest their comments are unlikely to shift expectations significantly in the absence of new economic data.
Nvidia Joins xAI’s Massive $20 Billion Fundraising Effort
Bloomberg News reported that xAI, the artificial intelligence startup founded by Elon Musk, has raised the target of its ongoing capital raise to $20 billion, with Nvidia among the investors.
The funds — a mix of equity and debt — will primarily be used to purchase Nvidia’s high-performance processors for xAI’s new Colossus 2 data center in Memphis.
Nvidia is expected to invest up to $2 billion in equity, according to Bloomberg. The move is part of the chipmaker’s broader effort to accelerate AI development across its partner ecosystem, following its recent $100 billion commitment to OpenAI.
Earlier reports suggested xAI had been seeking to raise around $10 billion, valuing the company at roughly $200 billion in September — making it one of the most valuable private firms globally, second only to OpenAI.
ABB to Sell Robotics Division to SoftBank
Swiss industrial group ABB announced an agreement to sell its robotics business to SoftBank Group Corp. for $5.38 billion, abandoning earlier plans for a spinoff.
The sale, expected to close between mid and late 2026, will bring in about $5.3 billion in cash, with proceeds to be allocated according to ABB’s “long-term capital allocation principles.” These include funding acquisitions, investing in organic growth, and potential shareholder returns.
SoftBank CEO Masayoshi Son said the deal supports the company’s vision of advancing “physical AI”, integrating robotics with artificial intelligence. Under Son’s leadership, SoftBank has aggressively expanded its presence in the AI and automation sectors over the past two years.
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