U.S. stock futures steadied on Wednesday after a sharp selloff in the previous session, as investors weighed conflicting news surrounding artificial intelligence (AI) developments against an increasingly uncertain economic outlook. Persistent unease over the economy and an ongoing U.S. government shutdown helped propel gold prices above $4,000 per ounce for the first time in history. Attention now turns to the Federal Reserve’s meeting minutes, while reports suggest Nvidia (NASDAQ:NVDA) is among the investors participating in xAI’s $20 billion fundraising round.
Futures Edge Higher After Selloff
Futures on major U.S. indexes pointed to modest gains early Wednesday. By 03:48 ET, S&P 500 futures rose 8 points (0.1%), Nasdaq 100 futures gained 38 points (0.2%), and Dow futures were up 60 points (0.1%).
The recovery comes after Wall Street pulled back from record levels on Tuesday — the S&P 500 fell 0.4%, the Nasdaq Composite dropped 0.7%, and the Dow Jones Industrial Average slipped 0.2%.
A key drag was a decline in Oracle (NYSE:ORCL) shares, which reversed recent gains amid concerns about its AI cloud business margins. A report from The Information suggested that profit pressures from heavy AI-related spending were more severe than expected.
Despite this, optimism around AI remained strong. AMD (NASDAQ:AMD) extended gains after announcing a partnership with OpenAI, IBM (NYSE:IBM) advanced on news of a collaboration with Anthropic, and Dell (NYSE:DELL) rose after boosting its long-term forecast.
With government data releases delayed due to the federal shutdown, traders have turned to private indicators to assess economic conditions. One such reading — a New York Fed survey — showed weakening business expectations and growing inflation concerns, dampening sentiment earlier in the week.
Gold Breaks $4,000 Barrier Amid Global Uncertainty
Gold prices soared past the $4,000 per ounce mark for the first time ever, as investors and central banks sought safety in the precious metal amid political instability and economic strain.
Bullion has gained more than 50% year-to-date, marking one of its strongest rallies in decades and positioning 2025 as its best year since 1979.
Analysts pointed to the U.S. government shutdown and waning confidence in other traditional havens — including the U.S. dollar and Treasury bonds — as key drivers behind gold’s momentum. Expectations of further Federal Reserve rate cuts and fiscal concerns have also boosted the metal’s appeal.
The Japanese yen, another safe-haven asset, weakened following the election of a dovish new leader of Japan’s ruling Liberal Democratic Party. Meanwhile, the surprise resignation of France’s prime minister earlier this week added to political uncertainty, giving gold additional support.
Analysts at ING said that exchange-traded funds have been increasing their gold holdings in anticipation of further Fed rate cuts. They also noted that central banks — particularly the People’s Bank of China — continue to buy gold aggressively, extending their accumulation streak for an 11th consecutive month in September despite record prices.
Fed Minutes in Focus
Investors are now awaiting the release of the Federal Open Market Committee (FOMC) minutes later Wednesday, which will provide insight into the September policy meeting.
At that meeting, the Fed cut interest rates by 25 basis points, restarting a rate reduction cycle that had been paused since December. Policymakers signaled that additional cuts could be announced at upcoming meetings in October and December, emphasizing the need to support the slowing U.S. labor market even as inflation remains elevated.
“The Fed minutes in aggregate should echo the incrementally dovish shift in bias” from the September statement and “probably reflect deep divisions too, as some officials push for a fairly aggressive rate cutting campaign while others prefer to limit the easing to 1-2 reductions given persistent inflation challenges and an employment situation that remains decent on an absolute basis,” analysts at Vital Knowledge said.
Several Fed officials are expected to speak this week, though analysts suggest that, with limited new data available, their comments are unlikely to meaningfully alter market expectations for the rate path.
Nvidia Invests in xAI’s $20 Billion Funding Round
According to Bloomberg News, Elon Musk’s AI startup xAI has raised its capital target to $20 billion, with Nvidia among the participants. The funding — a mix of equity and debt — is intended to help xAI acquire more Nvidia processors for its upcoming Colossus 2 data center in Memphis.
Nvidia plans to invest up to $2 billion in equity as part of the round, Bloomberg reported. The move supports Nvidia’s broader strategy of deepening partnerships with AI-focused clients, following its recent $100 billion commitment to OpenAI.
Earlier reports suggested xAI had aimed to raise $10 billion, with a valuation near $200 billion as of September — making it one of the world’s most valuable startups, behind OpenAI.
ABB Sells Robotics Unit to SoftBank
In other corporate news, ABB announced plans to sell its robotics division to SoftBank Group Corp. for $5.38 billion, abandoning earlier intentions to spin off the business.
The deal, expected to close between mid and late 2026, will generate about $5.3 billion in cash, which ABB said will be allocated according to its “long-term capital allocation principles.” These include potential acquisitions, organic growth investments, and shareholder returns.
SoftBank CEO Masayoshi Son said the acquisition supports the conglomerate’s vision for “physical AI”, blending robotics and artificial intelligence capabilities. Under Son’s leadership, SoftBank has ramped up its investment in AI and automation technologies over the past two years.
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