Markets Mixed After AI Rally Amid Fed Caution

U.S. stock futures were mostly muted or slightly lower as major indexes extended a two‑day pullback after fatigue in the AI‑led rally and profit‑taking, with Nasdaq and S&P futures down roughly 0.3%–0.2% and the Dow little changed. Traders are parsing cautious remarks from Fed Chair Jerome Powell and mixed Fed commentary even as CME FedWatch shows a high probability of an October rate cut, keeping markets cautious. Investors are focused on a busy economic calendar — including the final Q2 GDP revision, existing‑home sales, weekly jobless claims, durable‑goods orders and Friday’s PCE inflation report — any of which could set the path for rates and stocks. Tech and AI names led the weakness, with Nvidia, Oracle and Micron among the decliners, while Intel jumped on reports of Apple stake talks and Costco awaited quarterly results. Oil, gold and the 10‑year Treasury moved modestly, with the 10‑year around 4.13%–4.15%, and Asian and European markets were mixed as investors search for fresh catalysts to confirm whether the broader rally can resume.