U.S. stock futures wobbled on Friday after a broad market sell-off as Wall Street digested a cooler-than-expected inflation reading to steer the interest rate path.
S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) futures were both near the flat line. Nasdaq 100 (NQ=F) futures were also little changed on the day after intense selling pressure on technology.
Inflation fell more than expected in January, data released Friday by the Bureau of Labor Statistics showed. The Consumer Price Index showed that consumer prices rose 0.2 percent in January from the previous month and 2.4 percent on an annual basis. The report is likely to shape expectations for an already complicated Federal Reserve policy.
Meanwhile, caution prevails after a day of heavy selling as fears of AI disruption spread to sectors such as real estate, logistics and transportation — “old economy” names previously seen as a safe alternative to AI-related stocks. Technicians were hit, with all seven “Magnificent Seven” megacaps finishing below.
This may be set to pick up again as investors scrutinize the latest earnings for the next “shoot first, ask questions later” AI scare. Applied Materials ( AMAT ) stocks rose more than 10% as the chip toolmaker’s upbeat outlook reflected robust AI demand. But shares of Pinterest ( PINS ) fell about 20% as revenue fell and analysts worried about AI risks to its discovery platform.
On the earnings side, shares of Rivian ( RIVN ) rose nearly 20% after fourth-quarter earnings beat late Thursday. The electric vehicle maker said its mid-size R2 is on track for delivery before the summer. Before the bell, eyes are on Moderna’s ( MRNA ) report after it suffered a 10% drop in share value this week as the FDA rejected a new flu vaccine.
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