U.S. stock index futures fell Friday, with technology stocks facing pressure from escalating artificial intelligence concerns. The Nasdaq Composite is poised for its steepest monthly decline since March 2025. Investors are also anticipating crucial inflation data later today.
AI-related uncertainties have created significant turbulence for technology stocks this month, as questions arise about the return on massive investments in AI technology.
Nvidia saw a slight increase in premarket trading after a notable drop in the previous session, indicating continued investor caution regarding AI. Zscaler experienced a significant dip following its second-quarter report, and Intuit's shares declined after forecasting lower-than-expected third-quarter profits.
Earlier this year, software shares were impacted by fears of AI-driven industry disruptions.
The S&P 500 and Nasdaq closed lower in the last trading session, with the Nasdaq falling below its 50-day moving average for the 17th consecutive session.
Economic data, including a January producer price index reading, is expected to provide insights into the Federal Reserve's interest rate strategy.
Dow futures were down 0.55%, S&P 500 futures shed 0.36%, and Nasdaq 100 futures lost 0.31%.
Most megacap and growth stocks saw minor declines, with chipmakers like AMD and Broadcom also experiencing drops.
Netflix shares rose as the company decided to exit its pursuit of Warner Bros Discovery. Block surged nearly 19% after announcing significant job cuts to integrate AI across its operations. Dell climbed over 10% on expectations of doubled revenue from its AI-optimized servers and increased shareholder returns. Duolingo dropped nearly 25% after forecasting lower-than-expected bookings for the first quarter and 2026.