Dow Jones futures show little movement following weakness in AI majors, profit-taking

• Dow Jones futures remain steady amid market caution following weakness in AI leaders and profit-taking.
• US index futures were little changed as traders remained cautious amid mixed signals from Fed officials.
• Nvidia, Oracle, and Micron Technology led losses on concerns over elevated valuations and risky sector interdependencies.

Dow Jones futures hover around 46,450 during European hours on Thursday, ahead of the United States (US) session opening. Meanwhile, the S&P 500 futures remain steady near 6,700, while Nasdaq 100 futures remain close to 24,750.

US index futures move little after Wall Street fell for two consecutive sessions, following weakness in AI leaders and profit-taking near record highs. Additionally, traders adopt caution due to mixed signals from US Federal Reserve (Fed) officials. Investors now await Thursday's weekly US Initial Jobless Claims for Fed rate outlook cues, while speeches from Fed officials Schmid, Williams, Barr, and Logan will also be closely watched.

Fed Chair Jerome Powell struck a cautious note, stressing that the US central bank must weigh stubborn inflation against a softening job market, calling it "a challenging situation" and reiterating comments from last week. However, the CME FedWatch tool suggests that money markets are currently pricing in nearly a 92% possibility of a Fed rate cut in October, up from 87% a week earlier.

San Francisco Fed President Mary Daly said on Wednesday that further rate reductions are likely to be needed, as the central bank works to restore price stability and provide necessary support to the labor market. Chicago Fed President Austan Goolsbee broke away from the overarching narrative of consecutive Fed rate cuts heading through the end of the year.

On Wednesday's regular US session, the Dow Jones declined 0.37%, the S&P 500 slipped 0.28% and the Nasdaq Composite fell 0.33%, with all three benchmarks extending their pullback from all-time peaks. AI giants, including Nvidia, Oracle, and Micron Technology, led declines amid concerns over high valuations and risky sector interdependencies after recent deals.