U.S. stock futures little changed as markets assess AI slowdown calls and Fed meeting

U.S. stock index futures were little changed on Monday evening, following calls from leading artificial intelligence figures to slow development that weighed on technology stocks.

Investors stayed focused on an approaching Federal Reserve meeting, while ongoing geopolitical disturbances and disruptions to Middle East oil supplies also encouraged caution.

By 19:22 ET (23:22 GMT), S&P 500 Futures had added 0.04% to 7,695.50 points, Nasdaq 100 Futures were up 0.02% at 29,456.50 points, and Dow Jones Futures were unchanged at 52,879.0 points.

Futures stabilized after a lower session on Wall Street, where the main drag came from AI-exposed sectors such as chipmakers. A surge in oil prices also unsettled markets, though crude pared some of its gains.

Calls for slower AI development pressure chipmakers

Chipmakers were the largest weight on Wall Street on Monday, as the SOX index dropped more than 5%, dragged down by losses in major names including Nvidia and Micron.

The sector came under pressure after numerous top executives at several large AI companies urged a slowdown in development, pointing to risks the technology poses to humanity.

A slower development pace implies reduced spending on chips and data centers, removing the billions of dollars that fueled a major technology rally over the past three years.

Software stocks, however, gained on the possibility of slower AI development, since that segment had been hit in recent months by worries about AI-related disruption.

It was still unclear whether the calls to slow AI development would produce results. U.S. President Donald Trump on Monday sharply criticized efforts to regulate AI and also phoned Nvidia CEO Jensen Huang about the issue.

Fed meeting and elevated oil keep markets jittery

Markets were largely tense ahead of a Fed meeting later this week, with growing conviction that the central bank will lift interest rates by 25 basis points.

Wagers on a hike are building as evidence of sticky inflation mounts, which policymakers have cautioned will likely lead to some tightening this year.

A hike, however, could place Fed Chair Kevin Warsh in conflict with Trump, who has repeatedly urged lower rates to bolster economic growth.

Oil prices stayed firm, but ended Monday below their intraday peaks after Iran indicated it would work with Oman to reopen the Strait of Hormuz.

The conflict then widened on a new front as Houthi-Saudi hostilities intensified, disrupting supplies through another vital waterway, the Bab al-Mandab strait.

Strong crude prices deepened worries about persistent inflation and a hawkish Federal Reserve.