DOW Futures remain stable following a decline in equities during the previous session, as traders seek to interpret the mixed signals from artificial intelligence-related news amidst an uncertain economic environment. Concerns regarding the economic landscape, coupled with a prolonged suspension of U.S. government operations, have contributed to a notable increase in gold prices, surpassing the $4,000 per ounce threshold for the first time. The Federal Reserve is set to publish the minutes from its most recent policy meeting, while Nvidia, a prominent player in the AI sector, is said to be part of a consortium of investors participating in xAI’s $20 billion capital raising initiative.

DOW Futures remained stable on Wednesday, as investors evaluated emerging concerns regarding the AI boom while monitoring the overall economic landscape, all amidst a backdrop of an ongoing federal government shutdown and the absence of official data. By 03:48, S&P 500 futures had increased by 8 points, representing a 0.1% rise, Nasdaq 100 futures had gained 38 points, or 0.2%, and Dow futures had advanced by 60 points, equivalent to 0.1%. On Tuesday, equities on market a pullback from recent record highs, as the benchmark S&P 500 decreased by 0.4% and the tech-heavy Nasdaq Composite saw a decline of 0.7%. The blue-chip Dow Jones Industrial Average experienced a decline of 0.2%. The declines were partly driven by a downturn in the shares of cloud software company Oracle, which had experienced a significant rise the previous month amid optimism regarding its potential success in the AI competition. Analysts highlighted a report from The Information indicating that the margin profile of Oracle’s AI cloud infrastructure business, which has been impacted by significant investments in the emerging technology, was more unfavorable than earlier assessments suggested. Nonetheless, the discourse surrounding AI, arguably the most significant catalyst for the recent surge in stock prices, persisted unaltered. Shares in AMD, which announced a deal with ChatGPT-maker OpenAI earlier this week, extended a rise into a second day. Meanwhile, IBM advanced on a partnership with AI-name Anthropic, and AI server firm Dell rallied on a raised long-term guidance. The extended shutdown has resulted in the postponement of numerous critical economic indicators from the government, compelling traders to seek alternative data sources to assess the condition of the American economy. The recent measures have negatively impacted sentiment in the prior session, particularly highlighted by a New York Federal Reserve survey indicating a decline in future expectations alongside increasing inflation projections.

Gold prices have surged past $4,000 per ounce for the first time, as market participants, including private investors and central banks, sought to capitalize on the safe-haven status of the yellow metal amid political upheaval and economic uncertainty. Bullion has experienced an increase exceeding 50% this year, achieving multiple new all-time highs throughout the period. It is poised to achieve its most favorable year since 1979. Analysts have observed that the U.S. government shutdown, alongside a decline in other favored safe havens like the dollar and U.S. government bonds—attributed to expected Federal Reserve rate cuts and apprehensions regarding America’s fiscal situation—has enhanced the appeal of gold. The Japanese yen, traditionally viewed as a safe haven, experienced a decline subsequent to the election of a new, more dovish leader of the ruling Liberal Democratic Party. The global political landscape has become increasingly ambiguous following the unexpected resignation of France’s Prime Minister on Monday, which has further bolstered gold’s appeal. In the interim, a number of exchange-traded funds have been increasing their gold holdings as expectations for Federal Reserve rate cuts grow stronger, according to analysts at ING in a recent note. Several central banks are actively acquiring the precious metal, with the People’s Bank of China notably continuing its gold purchasing trend in September for the eleventh consecutive month, even in the face of record high prices.

Focus is now directed towards the forthcoming release of minutes on Wednesday from the Federal Reserve’s most recent policy meeting in September. During the meeting, members of the Federal Reserve voted to reduce interest rates by 25 basis points, thereby resuming a cycle of policy easing that had been suspended since December. Officials have generally forecasted that additional rate cuts could be anticipated at the central bank’s last two meetings of the year, one scheduled for later this month from October 28-29 and another in December. The basis for these projections was a perceived inclination to emphasize strengthening a recently decelerating U.S. labor market rather than addressing persistent inflation. In principle, reductions in rates may stimulate hiring and investment, though they carry the potential risk of increasing prices. The Fed minutes, when considered collectively, are expected to reflect the subtly dovish shift in bias articulated in the Fed’s September statement and reiterated during Chair Jerome Powell’s press conference, according to analysts. “However, they are likely to reveal significant divisions, as certain officials advocate for a relatively aggressive rate-cutting strategy, while others favor restricting the easing to one or two reductions, given ongoing inflationary pressures and a labor market that remains robust in absolute terms.” In other developments, several Federal Reserve officials are set to deliver remarks; however, the absence of fresh economic data suggests that their statements are unlikely to significantly shift expectations regarding the trajectory of interest rates, analysts noted.

According to reports, the artificial intelligence startup xAI, which is backed by Elon Musk, has raised its planned capital increase to potentially $20 billion. This includes an investment from Nvidia aimed at acquiring additional AI processors. The financing primarily targets the acquisition of additional Nvidia chips, which xAI intends to utilize in its forthcoming Colossus 2 data center located in Memphis, according to the report. The capital raise encompasses both equity and debt instruments. Nvidia is set to allocate up to $2 billion towards the equity segment of the transaction, according to Bloomberg’s report. The recent decision aligns with Nvidia’s overarching strategy to expedite its clients’ investments in artificial intelligence, following the company’s commitment of approximately $100 billion to OpenAI last week. However, there are growing apprehensions among analysts regarding the potentially circular dynamics of these agreements, which may obscure the true strength of the AI expansion. Earlier reports indicated that xAI was targeting approximately $10 billion in its current funding round. Additional reports similarly assessed xAI’s valuation at $200 billion in September, positioning it as one of the most valuable startups globally, trailing only OpenAI.

Swiss engineering giant ABB announced on Wednesday that it has reached an agreement to sell its robotics unit to SoftBank Group Corp. for an enterprise value of $5.38 billion, abandoning its initial plan to spin off the business. According to ABB’s statement, the transaction is projected to yield cash proceeds of approximately $5.3 billion and is anticipated to conclude in the middle to latter part of 2026. ABB stated that the proceeds from the transaction will be directed towards its “long-term capital allocation principles,” encompassing investments in acquisitions, organic growth, and possible returns to shareholders. SoftBank CEO Masayoshi Son stated that the acquisition was intended to advance the Japanese conglomerate’s goals of “physical AI,” as the company plans to integrate its robotics and artificial intelligence capabilities. Under the leadership of Son, SoftBank has made substantial investments in artificial intelligence and related sectors in the last two years.