Nasdaq Futures Slide Ahead of Fed Meeting Amid Yield Surge and AI Uncertainty

U.S. equity futures slipped in the early pre‑market hours as investors weighed higher Treasury yields, Middle East tensions and a potential slowdown in artificial‑intelligence development. At 4:00 a.m. ET, Nasdaq and Dow futures were down 0.7%, the S&P 500 futures fell 0.6% and the Russell 2000 futures slipped 0.8%. On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) remains “extremely bearish.”

Treasury markets were under pressure, with the 10‑year yield briefly crossing 5%—its highest level in almost 20 years—while Brent crude climbed above $105 a barrel amid escalating Middle East friction.

The Federal Reserve’s two‑day policy meeting opens today, with the decision and updated economic projections due Wednesday. CME FedWatch data prices a 92.3% probability of a 25‑basis‑point rate hike, while a Stocktwits poll shows 43% of retail investors expect no change and 41% anticipate a hike. The Fed last set its target range at 3.50‑3.75% in July, though three policymakers voted for a 25‑bps increase. Market focus now turns to Fed Chair Kevin Warsh’s guidance on the path forward.

The cautious tone follows a bruising session for semiconductor names on Monday. Nvidia, Micron, AMD, SanDisk, Nebius and other AI‑linked stocks fell as executives warned that the pace of frontier‑model development could slow. Trump and Nvidia CEO Jensen Huang rebuffed those warnings at the All‑In Summit, with Trump labeling AI fears a “hoax” and Huang insisting that America must keep investing to stay ahead.

Micron (MU) remains in the spotlight amid two catalysts: the broader AI‑memory demand narrative and labor tensions in Taiwan. The Taiwan union is reportedly pushing for a larger profit‑sharing payout and has kept strike preparations on the table.

SanDisk (SNDK) and SK Hynix (SKHY) are in the news as Japanese memory maker Kioxia considers raising at least $10 billion through a Nasdaq ADR listing, adding another layer to an already crowded memory market.

Apple (AAPL) is on the radar as it rolls out the next‑generation Siri AI with iOS 27.

Tesla (TSLA) and SpaceX (SPCX) are in the headlines again after Elon Musk said he would not rule out a merger between the two companies, citing their close collaboration across multiple projects.

Rocket Lab USA (RKLB) CFO Adam Spice noted that the proposed Iridium combination would effectively double the company’s size “overnight,” and hinted at further space‑sector deals.

Viking Therapeutics (VKTX) is under scrutiny after its CEO highlighted that patient tolerability, specifically avoiding gastrointestinal side effects on monthly weight‑loss injections, remains the key hurdle for the company’s therapy.

With the Fed decision looming, investors are watching how these developments could shape market direction in the coming days.