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U.S. stock index futures edged slightly lower on Friday, as investors remained cautious following a sharp selloff in technology stocks in the previous session and ahead of a closely watched U.S. inflation report later in the day.
By 05:35 ET (10:35 GMT), Dow Jones futures were down 95 points, or 0.2%, while S&P 500 futures slipped 0.1% and Nasdaq 100 futures also fell 0.1%.
The muted tone followed a heavy selloff on Wall Street on Thursday, driven largely by renewed weakness in technology shares. The Nasdaq Composite plunged 2%, as investors revisited concerns about potential disruptions from artificial intelligence and their impact on traditional business models. The S&P 500 dropped nearly 1.6%, while the Dow Jones Industrial Average slid almost 670 points, or 1.3%.
Tech earnings offer mixed signals
The technology sector remained firmly in focus after several major companies reported earnings after the market close on Thursday.
Arista Networks reiterated its full-year gross margin guidance, even as higher memory chip prices weighed on costs, offering some reassurance on its profitability outlook. Applied Materials also struck an upbeat tone, issuing a strong forecast that highlighted sustained demand driven by the AI boom and a global shortage of memory chips—tailwinds for the world’s largest semiconductor equipment maker.
In contrast, Pinterest dampened sentiment after forecasting first-quarter revenue below market expectations. The company cited softer advertising spending by retailers hit by tariffs, as well as intensifying competition from larger, well-capitalized rivals.
CPI data in sharp focus
Beyond earnings, investor attention turned squarely to the release of January U.S. consumer price index data later on Friday. The report is expected to show a modest cooling in both headline and core inflation from the previous month.
However, markets remain on edge, as January CPI readings have exceeded expectations in each of the past four years. Any upside surprise could reinforce the view that inflation remains sticky, complicating the Federal Reserve’s path toward easing policy.
Concerns over interest rates intensified earlier this week after stronger-than-expected nonfarm payrolls data showed the U.S. labor market remained tight, giving the Fed less urgency to cut rates. Futures markets are now pricing in a high probability that policy will remain unchanged at the March and April meetings, according to CME FedWatch data.
Gold and oil find some support
In commodities, gold prices rebounded in European trade, recovering part of Thursday’s steep losses amid lingering uncertainty over U.S. interest rates and rising geopolitical risks.
Spot gold climbed 1% to $4,970.79 an ounce, while gold futures rose 0.9% to $4,994.21 an ounce, after spot prices tumbled more than 3% in the previous session. Safe-haven demand was supported by reports that the U.S. may deploy a second aircraft carrier—the USS Gerald R. Ford—to the Middle East as nuclear talks with Iran faltered.
Oil prices were steadier but remained on track for weekly losses, weighed down by expectations of a sizable supply surplus and rising inventories, even as geopolitical risks eased. Brent crude gained 0.4% to $67.80 a barrel, while U.S. West Texas Intermediate rose 0.4% to $63.08 a barrel. Both benchmarks fell nearly 3% on Thursday and were set to post weekly declines of just under 1%.
Overall, markets entered the final session of the week in a cautious mood, balancing fragile risk sentiment, mixed corporate signals, and the potential market-moving impact of U.S. inflation data.
