U.S. stock futures declined after a sell-off in major technology shares, with Nvidia’s sharp drop leading the retreat. The pullback preceded the release of new U.S. inflation data, stirring uncertainty among equity markets.
As of 4:32 P.M. (GMT+7), Dow Jones Industrial Average futures slipped by 0.33%, or 164.00 points, to 49,335.50 points, while S&P 500 futures ticked down by 0.14%, or 9.70 points, to 6,899.20 points. Nasdaq 100 futures also decreased marginally by 0.04%, or 9.90 points, to 25,024.50 points.
Nvidia shares slid despite the company surpassing expectations for both earnings and revenue. The decline followed concerns among investors over the longevity of increased spending on artificial intelligence initiatives. As of the current moment, in the pre-marketing session, the shares rebounded, increasing by 0.82% to USD 186.40 per share.
Artificial intelligence continued to influence corporate strategies as Block’s stock soared by over 20% to USD 65.53 in pre-marketing. The surge came after CEO Jack Dorsey revealed that the firm would cut its workforce by nearly 40%. Dorsey noted that the adoption of AI is fundamentally changing operations and predicted that many organizations will make similar adjustments in the coming year.
Investors are now awaiting the release of January’s Producer Price Index. Economists anticipate a 0.3% increase in both headline and core readings. The inflation report is expected to play a significant role in shaping expectations regarding the Federal Reserve’s upcoming policy decisions.
Elsewhere in corporate developments, Netflix shares climbed after the company opted not to pursue an acquisition of Warner Bros. Discovery. This effectively left the Paramount Skydance deal as the last remaining transaction in play. Notably, the current earnings reporting period is entering its final phase.
