US stock futures steady after AI rally; Fed Rate Decision, CPI On Tap by

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Instagram Group Join Now– U.S. stock index futures were flat in evening trade on Tuesday as an AI-driven rally lifted Wall Street to new highs, focused on the Federal Reserve and upcoming inflation data. was

AI over AI remained a key point of support for the markets after Apple Inc (NASDAQ:) announced a partnership with ChatGPT maker OpenAI to introduce AI features. The prospect comes after Oracle Corporation (NYSE: ) announced a partnership with Microsoft Corporation (NASDAQ: ), OpenAI and Alphabet Inc's Class A (NASDAQ: ) Google for more cloud capacity to power AI. Post-breeding also spread into the trade.

Still, broader gains were capped by expectations of further cues on US interest rates later on Wednesday.

At 5,386.50 points, up 0.1%, while up 0.1% at 19,265.75 points. It remained steady at 38,788.0 points as of 19:14 ET (23:14 GMT).

Fed meeting on Wednesday, CPI data

Markets were focused on the conclusion of the two-day Fed meeting on Wednesday, where the central bank is widely expected to do more.

But markets were somewhat optimistic about a possible Fed rate cut, especially after its peers, notably, began cutting rates in early June.

Still, the general consensus is that the Fed will only start, because the US labor market is strong and inflation expectations are upbeat.

Ahead of the rate decision, May data is expected to provide further clues on inflation.

The reading is also due on Wednesday, and inflation is expected to remain sticky in May, well above the Fed's 2% annual target range.

Sticky inflation reduces the likelihood of a rate cut by the Fed, while the prospect of a prolonged period of US rate hikes presents a limited outlook for stock markets.

S&P 500, Nasdaq at record highs on AI hype

And ended at a record high on Tuesday, driven primarily by technology stocks amid continued hype over AI. Apple Inc rose more than 7% to a record high after announcing its new AI features, while Microsoft and Alphabet added about 1% each.

The S&P 500 ended Tuesday up 0.3 percent at 5,375.32 points, while the Nasdaq Composite added 0.9 percent to 17,343.84 points. But the more economically sensitive lagged behind its peers, falling 0.3 percent to 38,747.42 points.

Profits in most tech stocks did not extend in after-trade.

But Oracle rose nearly 9 percent after the bell on its new AI partnerships, which largely overshadowed the company's disappointing quarterly earnings.

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