Futures Edge Up After Wall Street’s Rally Hits Pause

​Wall Street Takes a Breather
U.S. stock futures inched higher Wednesday after Wall Street finally cooled off from its record-setting sprint. Dow, S&P 500, and Nasdaq futures each rose about 0.2%, signaling investors are still leaning bullish, just with a touch more caution.

Powell’s Sobering Note
The rally pause followed Fed Chair Jerome Powell’s speech, where he stressed the Fed has “no risk-free path” with low employment and sticky inflation. He hinted at more cuts this year but warned any easing would come carefully. Powell also said stocks are looking “fairly highly valued,” which gave traders reason to tap the brakes.

Micron Fuels the AI Story
After hours, Micron Technology shares popped as its results beat expectations. Investors had been watching closely, seeing Micron’s performance as a pulse check for the booming AI trade.

Inflation Test Looms
The week’s big wildcard is Friday’s PCE inflation index, the Fed’s preferred measure. Traders want proof that inflation is cooling enough to keep the Fed comfortable with its dovish tilt. Expectations for two more cuts this year hang in the balance.

AI, China, and Shutdown Drama
The broader market tone remains punchy:
- Alibaba surged after pledging $50 billion-plus in AI spending, lifting Chinese tech stocks.
- In Washington, a potential government shutdown is back on the radar as funding deadlines loom.
Energy markets buzzed with reports that Big Tech’s AI expansion could strain the U.S. power grid, setting off talk of a natural gas boom.

The Bottom Line
​After three weeks of nonstop highs, Wall Street finally hit pause. But with AI fueling optimism, Powell hinting at caution, and inflation data on deck, the market’s next leg could swing fast.