Fed's Decision Looms as Markets Brace for AI Earnings and Silver Surge

Markets are on edge as the Federal Reserve's policy board meeting nears, with a rate cut anticipated amid sky-high AI valuations. The Japanese yen's slide and silver prices reaching record peaks add to the tension. Earnings reports, especially in the AI sector, could impact future investment decisions.

Markets across Asia and Wall Street futures saw declines ahead of a crucial Federal Reserve policy board meeting, poised to test lofty valuations in the AI sector.

The market buzzed with a steep decline in the Japanese yen and silver prices hitting record heights, drawing attention as investors heavily anticipated a quarter-point rate cut by the Fed. However, future guidance remains uncertain, with mixed signals on potential rate actions next year.

AI sector earnings from giants like Oracle and Broadcom would significantly impact market dynamics, especially given the volatility expectations on earnings day. Meanwhile, silver continues its stellar run, propelled by strong industrial demand in solar energy and electric vehicles.

(With inputs from agencies.)