Rate Hike Pause? AI Boom Fuels Market Jitters

Investors are watching two key forces this week: a possible pause in interest rate hikes and surging demand for AI hardware. The Federal Reserve is expected to signal a slower pace of rate increases, a move that could calm markets after months of aggressive tightening. Meanwhile, companies building artificial intelligence systems are driving a new wave of spending on powerful computer chips. This "AI hardware momentum" is boosting stocks of chipmakers and data-center firms. Analysts say the combination of steady borrowing costs and strong AI investment may set the tone for the entire quarter. No major policy changes are expected, but any shift in the Fed's language could trigger sudden market moves.