U.S. stock futures flat after soaring yields, AI jitters dent Wall St

Investing.com-- U.S. stock index futures steadied on Monday evening after soaring yields and concerns over slowing artificial intelligence development dented Wall Street.

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Anticipation of a raft of key economic prints and Federal Reserve commentary also spurred caution towards U.S. markets, especially amid growing anxiety over higher interest rates.

S&P 500 Futures fell 0.08% to 7,740.25 points by 20:19 ET (00:19 GMT). Dow Jones Futures fell 0.08% to 51,796.0 points, while Nasdaq 100 Futures fell 0.05% to 30,548.0 points.

Concerns over Iran also weighed, after U.S. President Donald Trump denied a report that he had offered any concessions to Iran for a nuclear deal.

Goldman Sachs Group Inc (NYSE:GS) was in focus after the Wall Street Journal reported the bank's board discussed a plan for CEO David Solomon to step down and be replaced by operating officer John Waldron by as soon as 2027.

OpenAI was a major source of pressure on Wall Street after reports said the AI startup had halted training of new models and had also scrapped plans to release a new model in the coming days.

The reports battered the chipmaking and data center complex, as markets feared a broader slowdown in AI development, which could in turn erode demand for chips and compute capacity.

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Adding to pressure on technology stocks, Treasury yields remained upbeat this week after racing to multi-year highs earlier in the month. The benchmark 10-year rate remained pinned above 5.2% and close to levels last seen in 2007.

Focus this week is on key labor market readings and Fed commentary for more cues on the path of rates. JOLTS job openings data for August is due later on Tuesday, while Fed officials including Michelle Bowman, Austan Goolsbee, and John Williams are set to speak on Tuesday.

The Fed hiked rates by 25 basis points earlier in September and presented a hawkish outlook in the face of sticky inflation. Any signs of labor market strength give the Fed more headroom to raise rates.

Tech stocks lagged on Monday, with the NASDAQ Composite down 0.9%. The S&P 500 fell 0.77% and the Dow Jones Industrial Average fell 0.67%.

Concerns over the Iran war also remained in play after U.S. President Donald Trump denied an Axios report that he was willing to grant Tehran some sanctions relief in exchange for assurances on its nuclear program.

The report came as Qatari and Pakistani mediators continued to work towards hashing out a peace deal between the warring countries, although there appeared to be few signs of progress.

The U.S. and Iran remained at odds over the Strait of Hormuz, with Tehran seen attacking ships in the waterway, while the U.S. maintained its naval blockade against the country.

Trump over the weekend said he had rejected Iran's most recent offer for peace. Separately, Iranian officials said they were hopeful for a peace deal in the coming days.

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