By ELAINE KURTENBACH and MICHELLE CHAPMAN AP Business Writers
U.S. futures are flat as artificial intelligence-related stocks continue to sell off, while oil prices jetted higher again.
AI-related stocks have become volatile in recent months as the value of company shares have soared while confidence in a pay off, at least soon, has waned.
The futures for the S&P 500 were relatively unchanged, while those for the Dow Jones Industrial Average rose 0.1%. Nasdaq futures declined 0.1%.
Oracle shares slipped more than 1% before the market opened Wednesday. Shares of Marvell Technology and Intel both fell nearly 2%. Micron Technology dipped 1%. The seller of computer memory was one of the largest drags on the S&P 500 Tuesday.
Target’s stock declined 1.6% even as the retailer reported its second straight quarter of comparable sales gains Wednesday under new CEO Michael Fiddelke.
Markets are also reacting to decision by President Donald Trump to delay U.S. tariffs on $20 billion worth of Canadian import.
Later Wednesday, the Federal Reserve will release minutes from the most recent meeting of the rate-setting committee.
Crude prices continue to climb with the conflict over the Strait of Hormuz unresolved. Brent crude, which was trading for around $70 per barrel before the start of the war, gained 1% to $91.91 per barrel early Wednesday. U.S. benchmark crude oil rose 1.1% to $84.99 per barrel.
Bond yields have jumped since the war began because high oil prices are pushing inflation higher. That has increased the anxiety over government debt and is also one of the reasons the fast-growing tech sector, which thrives when borrowing costs are low, is under pressure.
The yield on the 10-year U.S. Treasury edged down to 4.70% from 4.72% Wednesday but remains well above its 3.97% level from just before the war with Iran began. The 30-year Treasury yield also ticked lower but is still near its highest level since 2007.
High yields have already sent the average long-term U.S. mortgage rate near its highest level in a year, which has hurt the housing industry.
In Europe, Germany’s DAX shed 0.1% to 26,084.43, while the CAC 40 in Paris rose 0.3% to 8,535.30. Britain’s FTSE 100 slipped 0.2% to 10,705.47.
In Tokyo, the Nikkei 225 sank 3.2% to 65,326.42 as worries over rising bond yields coupled with selling of tech shares pulled the benchmark lower.
The U.S. dollar fell to 159.13 Japanese yen from 159.61 yen. The euro rose to $1.1604 from $1.1577.
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Associated Press Business Writer Chan Ho-him in Hong Kong contributed.