U.S. stock futures flat after soaring yields, AI jitters dent Wall St

U.S. stock index futures steadied on Monday evening as soaring yields and worries about slowing artificial intelligence progress weighed on Wall Street. Investors remained cautious due to an influx of key economic data and Federal Reserve commentary, especially as higher interest rates loomed. The S&P 500 Futures slipped 0.08% to 7,740.25 points, while Dow Jones and Nasdaq 100 Futures also declined by 0.08% and 0.05% respectively, ending the day at 51,796.0 points and 30,548.0 points.

Tensions between Iran and the U.S. also stirred markets after President Donald Trump dismissed claims that he had offered concessions to Tehran for a nuclear agreement. Goldman Sachs Group Inc., led by CEO David Solomon, drew attention after the Wall Street Journal reported discussions about his potential replacement by operating officer John Waldron by 2027.

Reports of OpenAI halting AI model training and cancelling plans for a new model negatively impacted technology-focused stocks, leading to broader fears of an AI slowdown and potential chip and compute capacity demand downturn. With Treasury yields hitting multi-year highs, traders were particularly focused on upcoming labor market data and Fed remarks to gauge rate trajectory.

Key labor market indicators, such as the JOLTS job openings report, were due later on Tuesday, alongside speeches from Fed officials including Michelle Bowman, Austan Goolsbee, and John Williams. The Fed had already increased rates by 25 basis points in September and issued a hawkish outlook amid persistent inflation. Speculation over a peace deal between Iran and the U.S. persisted, with U.S. President Donald Trump denying reports of his willingness to provide sanctions relief in exchange for nuclear program assurances.