Moomoo U.S. Markets Look Ahead for Tuesday

Wall Street will be watching oil prices, U.S. Treasury yields and AI-related stocks on Tuesday as the Dow, S&P 500 and Nasdaq Composite try to recover from a pullback they suffered on Monday.

The $Dow Jones Industrial Average (.DJI.US)$ fell 0.6%, while the $S&P 500 Index (.SPX.US)$ lost 0.5% and the $Nasdaq Composite Index (.IXIC.US)$ gave back 0.3% as AI-friendly stocks like $Micron Technology (MU.US)$, $SanDisk (SNDK.US)$, $NVIDIA (NVDA.US)$ and others lost ground.

Multiple Big Techs fell after artificial-intelligence executives from Anthropic, OpenAI and xAI parent $SpaceX (SPCX.US)$ agreed over the weekend that the industry should slow down development to prevent creating dangerous advanced AI systems.

The comments came after AI researcher Jacob Coxon resigned from Anthropic and warned on social media that the industry is rushing to build advanced systems that he believes could wipe out humanity by decade's end.

Talk of throttling back development sent several stocks involved in the AI buildout lower on Monday.

Decliners included $Nokia Oyj (NOK.US)$, $Vertiv Holdings (VRT.US)$, $SK hynix (SKHY.US)$, $Marvell Technology (MRVL.US)$, $Bloom Energy (BE.US)$, $Micron Technology (MU.US)$, $SanDisk (SNDK.US)$, $Broadcom (AVGO.US)$, $Advanced Micro Devices (AMD.US)$, $Oracle (ORCL.US)$, $SpaceX (SPCX.US)$, $Intel (INTC.US)$and many other names.

$Corning (GLW.US)$ also sank 13.7% on a combination of AI jitters and word that it plans to offer as much as $2 billion in additional stock over time at market prices. That will presumably dilute existing shareholders.

Corning's news drove down other optical-networking peers by close to or more than 10%, with losers including $Coherent (COHR.US)$, $Lumentum (LITE.US)$ and $Applied Optoelectronics (AAOI.US)$.

Looking ahead to Tuesday's session, the Federal Reserve will begin its key two-day interest-rate meeting, but won't announce any decisions on what it will do with its benchmark Federal Funds rate until Wednesday afternoon.

However, the CME FedWatch tool put the odds of a 25-point rate hike at 92.4% at last check Monday.

Meanwhile, there will be no major economic reports due out Tuesday, while the only noteworthy earnings release will come from $Trip.com (TCOM.US)$ after the closing bell.

That said, investors will continue to watch both oil prices and U.S. Treasury yields for signs of stocks-unfriendly U.S. inflation.

$Crude Oil Futures (DEC6) (CLmain.US)$ briefly rose to a roughly four-month high of $104.95 a barrel in New York trading on Monday, but later trimmed those gains.

Separately, the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ hit a 5.014% intraday high Monday – its loftiest level since October 2023 – on continuing fears of U.S. inflation.

Stock investors tend to dislike inflation and rising interest rates because both tend to push bond and money-market yields higher. That can draw investor money away from equities and send stock prices lower.

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