S&P 500 Futures Slip as Fed Decision Looms, AI Slowdown Fears Bite

S&P 500 futures turned lower into Wednesday's session as heavyweight technology names dragged sentiment down, following calls from AI leaders including Anthropic for a slowdown in aggressive AI development. That narrative has rattled growth-heavy index constituents that have powered much of this year's gains.

The bigger swing factor remains the Federal Reserve. Markets are now pricing an 87% probability of a rate move Wednesday, with political pressure from Trump for cuts colliding with speculation around a Warsh-led hawkish tilt. That tension is keeping index futures volatile ahead of the announcement.

With oil prices also rising in tandem with equity weakness, the S&P 500 faces a dual headwind of margin pressure and rate uncertainty. Traders should watch index reaction in the minutes following the Fed statement for directional confirmation.