U.S. Futures Little Changed After Semiconductor-Led Selloff: Dow Jones, S&P, Nasdaq, Wall Street

U.S. Futures Little Changed After Semiconductor-Led Selloff: Dow Jones, S&P, Nasdaq, Wall Street

Fiona Craig

Wed, August 19, 2026 at 12:50 PM GMT+3 4 min read

U.S. stock futures traded close to flat on Wednesday as investors assessed the previous session's semiconductor-driven decline and rising government bond yields while awaiting fresh signals from the Federal Reserve.

At 03:11 ET (07:11 GMT), Dow futures were up 42 points, or 0.1%, while S&P 500 futures were broadly unchanged. Nasdaq 100 futures slipped 40 points, or 0.1%.

Wall Street's main indices retreated on Tuesday, with Vital Knowledge analysts attributing weakness among semiconductor stocks to profit-taking and concerns about a "tidal wave" of debt issuance associated with the artificial intelligence investment boom.

Questions continue to surround the sustainability of enormous spending on AI infrastructure, particularly the advanced data centres required to support increasingly powerful models and applications.

Deutsche Bank analysts said these concerns, combined with worries about fiscal deficits and higher oil prices linked to the continuing stalemate in the Iran conflict, helped drive global bond yields to fresh highs.

U.S. Treasury yields subsequently eased after weaker housing and industrial production figures raised questions about how quickly the Federal Reserve could tighten monetary policy.

Fed Minutes Could Provide Clues on Interest Rates

Expectations for a Federal Reserve rate increase in the coming months have recently weakened following softer labour-market figures and relatively moderate inflation data.

Attention now turns to the minutes from the Fed's July policy meeting. Officials left interest rates unchanged at that gathering, although bond markets were volatile afterwards as investors attempted to interpret remarks from Fed Chair Kevin Warsh.

Warsh offered little guidance about the direction of future policy, saying only that the central bank will "not waver" in its commitment to returning inflation to its 2% target.

With limited forward guidance available, investors will scrutinise the minutes for evidence of how policymakers view inflation, economic activity and the appropriate path for interest rates.

Warsh described the July gathering as a "good family fight," after three policymakers dissented from the decision to hold rates and instead supported a 25-basis-point increase.

Target and Analog Devices Lead Earnings Calendar

Corporate earnings will provide another important focus, with several major retailers due to report and potentially offer new insight into the financial health of U.S. consumers.

Target (NYSE:TGT) is scheduled to release its results before the opening bell. In May, the retailer raised its annual sales growth forecast for the first time in two years despite warning that the broader economic environment remained challenging.

Chief Executive Michael Fiddelke said at the time that while he was encouraged by first-quarter sales growth of 5.6%, he would not "confuse this progress with potential."

Lowe's (NYSE:LOW) is also due to report. Its results follow numbers from rival Home Depot (NYSE:HD), which delivered better-than-expected second-quarter sales and profit on Tuesday as repair and maintenance demand helped compensate for weaker spending on major renovation projects.

Outside retail, Analog Devices (NASDAQ:ADI) will also attract attention. The semiconductor manufacturer previously issued a third-quarter revenue forecast above market expectations, supported by demand for chips and sensor components linked to the expansion of AI infrastructure.

Trump Pauses 50% Canada Tariffs for Three Days

Trade policy is another factor in focus after U.S. President Donald Trump announced a three-day pause to planned 50% tariffs on a range of Canadian goods.

The decision came only hours before the new levies were scheduled to take effect, providing additional time for Washington and Ottawa to finalise an agreement.

Trump said in a social media post that the U.S. and Canada have a "deal," subject to "the finalization of documents."

The administration had threatened in July to impose the tariffs on approximately $20 billion of Canadian products, including wine, furniture, fishing rods and hockey sticks, using a Depression-era law aimed at countries accused of discriminating against U.S. goods.

The Office of the U.S. Trade Representative said the prospective agreement would improve access to Canadian markets for American products and include "alignment" on digital trade issues.

Canadian Prime Minister Mark Carney acknowledged progress in negotiations but said "important work" remained. He also reiterated his objective of building a Canadian economy that is "more independent" and "competitive".

OpenAI Revenue Growth Reportedly Trails Anthropic

Developments in artificial intelligence are also attracting attention following a Wall Street Journal report comparing the latest financial performance of OpenAI (NASDAQ:OAI) and Anthropic (NASDAQ:ANTP).

According to the report, OpenAI told investors that second-quarter revenue increased 18% to $6.7 billion from $5.7 billion in the first quarter, although losses widened.

Anthropic, meanwhile, reportedly more than doubled quarterly revenue to $11.6 billion and generated a small operating profit, overtaking OpenAI for the first time.

The contrasting performances could signal a change in competitive momentum within the AI industry. Slower ChatGPT growth and increasing adoption of Anthropic's Claude Code among developers have added pressure on OpenAI to accelerate growth and adapt its strategy.

Target stock price

Lowe's stock price

Home Depot stock price

Analog Devices stock price