A trader is seen working on the floor of the New York Stock Exchange (NYSE) in New York City, USA, on September 22, 2025.
On Monday night, stock futures remained relatively stable as investors kept an eye on what could be the highest market risk ever.
Futures linked to the Dow Jones industrial average dropped by 18 points, reflecting a 0.04% decline. Similarly, S&P Futures and Nasdaq 100 futures also fell by about 0.04%.
Despite this, the three major indexes logged three straight days of gains for the S&P 500, which hit new records during the daytime trading on Monday. Notably, Nvidia’s stock surged nearly 4% after the company announced its commitment to invest $100 billion in OpenAI for expanding data center operations.
As market valuations rise, there are ongoing doubts about whether AI-related investments can continue to boost US stocks.
Joe Davis, Vanguard’s Chief Global Economist, emphasized that the rapid growth and adoption of AI, combined with recent rate cuts from the Federal Reserve, are key factors contributing to higher market multiples, even as “fundamentals are okay.”
“When valuations are a bit elevated, even minor bad news can expose vulnerabilities,” Davis explained on CNBC’s “Closing Bell: Overtime.” “It’s not guaranteed, but we need to maintain growth momentum later this year, or face persistent inflation, and I believe one of these factors will be crucial.”
The latest update from the Fed regarding inflation, specifically the Personal Consumption Expenditure Price Index, was released on Friday and is anticipated to shed light on the monetary policy direction for the remainder of the year.
Investors are also increasingly wary of a potential government shutdown ahead of the September 30 deadline. This concern grew after the Senate turned down funding proposals from both Republicans and Democrats. Historically, stock markets tend to shrug off worries about government closures, but this situation feels different, given that the economic environment leading up to a potential shutdown is the weakest it has been in over two decades.
