U.S. stock futures are showing minimal movement as the market anticipates the Federal Reserve’s decision on interest rates later today. The central bank is widely expected to maintain the current borrowing costs. Additionally, Andy Jassy, CEO of Amazon (AMZN), informed employees that the company may reduce its corporate workforce in response to advancements in artificial intelligence (AI). Meanwhile, OpenAI CEO Sam Altman revealed that Meta Platforms (META) has proposed signing bonuses reaching $100 million to recruit AI talent from his organization. Tesla (TSLA) shares are also a point of interest following reports of a planned production halt at its facility in Austin, Texas.
U.S. stock futures are stable as investors keep a watchful eye on the unfolding situation in the Israel-Iran conflict while gearing up for today’s crucial Federal Reserve interest-rate announcement. Trading will pause tomorrow for the Juneteenth federal holiday. Nasdaq futures have remained flat after a 0.9% dip on Tuesday, correlating with a broader market selloff prompted by geopolitical tensions. Dow Jones Industrial Average and S&P 500 futures likewise show little change. Oil futures are inching up, trading at around $75 a barrel, while Bitcoin (BTCUSD) and gold futures have declined. The yield on the 10-year Treasury note remains virtually unchanged.
The Federal Reserve is scheduled to announce its interest rate stance at 2 p.m. ET today, with almost all early Wednesday market indicators suggesting a 100% probability that the Federal Open Market Committee will keep the benchmark rate steady at 4.25% to 4.5%, a range it has maintained since December. Should the Fed opt to leave rates unchanged, former President Donald Trump may resume his critique of Fed Chair Jerome Powell for not instituting a reduction. Powell is expected to hold a press conference at 2:30 p.m. ET.
In a recent memo, Amazon’s CEO Andy Jassy anticipates that the company will downsize its corporate workforce over the coming years due to the impact of AI technology. He indicated that AI could play a vital role in enhancing innovation at Amazon by managing routine tasks that have traditionally been performed by human staff. As per the company’s latest quarterly reports, Amazon employed nearly 1.6 million individuals in full-time and part-time roles as of March 31. Shares of Amazon are seeing slight gains in early trading.
OpenAI’s Sam Altman disclosed during an appearance on his brother’s podcast, “Uncapped with Jack Altman,” that Meta Platforms is extending signing bonuses that could peak at $100 million to lure AI professionals from his company. While Altman noted that the compensation packages being offered are even more substantial, he mentioned that “so far none of our best people have decided to take (Meta CEO Mark Zuckerberg) up on that.” This recruitment effort surfaces amid reported dissatisfaction from Zuckerberg regarding the pace of Meta’s AI advancements.
Finally, Tesla’s stock is gaining traction in premarket trading following a nearly 4% decrease in the previous session due to concerns about production levels. Business Insider reports that Tesla plans to suspend production of both Cybertrucks and Model Y vehicles at its Austin facility for a week, starting the week of June 30. This halt marks the third production interruption within the past year. The Austin site is also where Tesla’s eagerly awaited robotaxi launch, tentatively scheduled for June 22, is expected to occur.