DOW Futures remain near the flatline as markets assess the persistent enthusiasm surrounding artificial intelligence and the recent minutes from the Federal Reserve’s latest meeting. The Federal Reserve exhibited a lack of consensus regarding the future path of interest rates for the remainder of 2025, as officials evaluated the dual challenges posed by softening employment figures and persistently high inflation rates. In other developments, Delta and PepsiCo are set to release their quarterly earnings, while gold experiences a retreat following an unprecedented surge.

DOW Futures sought direction on Thursday, as investors analyzed the minutes from the Fed’s latest meeting and evaluated an artificial intelligence-driven rally in tech shares from the previous session. As of 03:12, the Dow futures contract and S&P 500 contract exhibited minimal movement, whereas Nasdaq 100 futures experienced a slight increase of 16 points, translating to a 0.1% rise. The benchmark S&P 500 and tech-heavy Nasdaq experienced gains on Wednesday, achieving new all-time closing highs, largely propelled by mega-cap companies driven by AI, which have significantly contributed to the equity market’s progress this year. Despite concerns regarding the apparent circular dynamics of numerous recent AI-related transactions, the excitement surrounding this emerging technology has demonstrated little indication of diminishing. Limited advancements have emerged in overcoming a persistent impasse in Washington, which has resulted in a federal government shutdown that has now lasted over a week—potentially jeopardizing the timely release of forthcoming economic data. In light of the persistent AI boom and the lack of new indicators regarding the U.S. economy, analysts have indicated that traders are unlikely to find substantial information to act upon before the commencement of the third-quarter earnings season next week.

Markets had the chance to analyze the minutes from the Federal Open Market Committee’s September meeting, during which the central bank decided to reduce interest rates by 25 basis points and indicated that further cuts might be anticipated by year-end. The minutes revealed a division within the committee regarding the trajectory of interest rates, with significant discussion focused on a decelerating labor market and persistent inflationary pressures. A rate cut is expected to stimulate investment and hiring, though it carries the potential risk of rekindling inflationary pressures. Most officials “judged that it likely would be appropriate to ease policy further over the remainder” of 2025, although the exact timing and scope of the cuts remained a source of uncertainty, the minutes indicated. In a note, analysts at Capital Economics indicated that the minutes affirmed that the majority of FOMC participants supported reducing rates to a more “neutral setting,” which is a level that neither supports nor constrains the broader economy, owing to ongoing “downside risks” to the employment landscape. “Nonetheless, with a majority of participants still emphasising the upside risks to their outlooks for inflation, we remain comfortable with our view that the FOMC will proceed at a slower pace than market pricing suggests,” the analysts stated. In the wake of the minutes’ release, expectations that the Fed will reduce rates by an additional 25 basis points at its forthcoming meeting this month remain firmly in place.

As the quarterly corporate reporting period approaches its commencement next week, investors will nonetheless be monitoring the figures released by Delta Air Lines on Thursday. The figures, scheduled for release prior to the market’s opening, will be disclosed shortly after the airline reiterated its financial outlook for both the full year and the current quarter. Delta has revised its revenue outlook for the third quarter through September, raising the lower end of its expectations. The airline now anticipates a top-line increase of 2% to 4%, up from a previous forecast range of 0% to 4%. The recent developments indicate a significantly more optimistic perspective for the U.S. travel sector, following a period of uncertainty and negativity earlier this year due to the implementation of Trump’s stringent import tariffs. Numerous travelers have sought to capitalize on significant discounts or offers to embark on summer vacations, while industry leaders have underscored their belief that the robustness of the travel sector may provide airlines with the opportunity to increase airfares in the concluding months of 2025.

PepsiCo is set to announce its earnings prior to the market’s opening, as analysts consider proposals for restructuring the packaged food behemoth put forth by activist investor Elliott Investment Management. Elliott, which disclosed a $4 billion stake in the company in September, has proposed that Pepsi divest brands such as Quaker and potentially spin off its bottling network to reduce costs and enhance margins. The hedge fund has indicated that these modifications may enable Pepsi to concentrate its efforts on new chips and sodas while optimizing its operations. According to reports, Elliott and Pepsi are currently in discussions regarding the proposals. However, other investors have expressed concerns that the separation of the bottling business, in particular, may require several years to complete and could negatively impact margins and earnings. The manufacturer of well-known products like Mountain Dew soda and Lay’s potato chips has experienced a decline of over 7% this year, underperforming relative to the broader consumer staples index. “Sentiment has improved somewhat with the presence of Elliott and the expectation of some type of strategic action to bolster shareholder value. However, the entire staples sector is encountering both cyclical and secular challenges, and management is likely to resist some of the more radical proposals, such as spinning off bottling,” analysts noted.

Gold prices experienced a modest decline as the ceasefire between Hamas and Israel diminished some of the safe-haven demand; however, the yellow metal continues to hover near recent record highs. Bullion, having experienced a remarkable surge that has propelled its price beyond $4,000 per ounce for the first time, continues to be supported by apprehensions regarding Japanese fiscal stability, the persistent U.S. government shutdown, and a political crisis in France. The dovish tone reflected in the Fed minutes has contributed to a prevailing optimism in the markets regarding potential rate cuts, thereby providing additional support for gold. Spot gold declined by 0.2% to $4,032.10 per ounce, whereas December gold futures decreased by 0.5% to $4,050.50 per ounce as of 03:48.