S&P 500 futures fell 0.5% premarket as weakness in chip stocks resumes. Technology sector declines dragged broader market sentiment lower, with Intel and Advanced Micro Devices (AMD) among the heaviest hit names. Investors remain cautious ahead of Federal Reserve policy decisions this week.

Chip sector struggles reflect ongoing concerns about demand for AI infrastructure and global supply chain disruptions. Semiconductor industry revenue fell 12% sequentially in Q1, per industry reports. Market analysts note this trend could impact broader tech valuations and enterprise spending forecasts.

Bullish momentum from recent rallies appears to be fading, with Dow Jones Industrial Average futures also showing negative movement. Analysts suggest the market correction may signal profit-taking after months of strong performance, though economic indicators remain mixed.

Investor focus now shifts to Wednesday's Federal Reserve meeting, where interest rate decisions could determine near-term market direction. The dollar index edged higher as bond yields rose across the yield curve.