U.S. Futures Hold Steady as Stock Market Rally Faces Valuation Tests
U.S. equity futures hovered near flat after a record-setting rally fueled by AI Optimism and expectations of Federal Reserve rate cuts. The Dow, S&P 500, and NASDAQ notched consecutive all-time highs, with tech giants like Nvidia and Tesla leading gains. Nvidia's $100 billion OpenAI investment and Oracle's TikTok deal involvement underscored the market's AI-driven momentum.
Stretched valuations now mirror dot-com era levels, putting pressure on corporate earnings to deliver sustained growth through 2026. While Big Tech has carried the rally, analysts watch for potential spillover into broader sectors as AI productivity gains materialize. The risk-reward calculus grows delicate - any earnings disappointment could swiftly unwind bullish sentiment.
