US equity futures are slightly higher following a strong rebound on Tuesday. European markets are trading mixed, and Asian equities ended higher in light trading. Markets continue to digest AI sector volatility following Monday’s sharp selloff driven by China's DeepSeek, as investors evaluate its impact on US tech leadership and AI capex trends. Focus has shifted toward the efficiency gains DeepSeek’s breakthroughs could bring and potential US policy responses, including tightening China sanctions. The White House is also currently assessing national security implications. The Fed is widely expected to leave rates unchanged at today’s FOMC meeting. Meanwhile, Trump’s latest tariff comments added to trade uncertainty, as he floated significantly higher global tariff rates and targeted specific industries.
Companies Mentioned: DeepSeek, OpenAI, Microsoft (NASDAQ:MSFT), Alibaba (NYSE:BABA), American Axle & Manufacturing (NYSE:AXL), Dowlais Group