Nasdaq futures declined on Friday, anticipating further losses following a widespread market sell-off as market awaited the latest consumer inflation data to guide expectations regarding the trajectory of interest rates. Contracts on the S&P 500 and the Dow Jones Industrial Average futures both dropped roughly 0.4%. Meanwhile, Nasdaq 100 futures fell 0.3%, signaling a return of pressure on techs. Caution prevails following a day marked by significant selling, as concerns regarding AI disruption have extended into sectors like real estate, logistics, and transportation — traditionally regarded as a safe haven compared to AI-related equities. The technology sector faced significant declines, as all seven of the prominent “Magnificent Seven” megacap stocks ended the trading session in the red.
That may be poised to recommence as investors closely examine the most recent earnings in light of the forthcoming “shoot first, ask questions later” AI apprehension. Applied Materials stock surged over 10% as the chip toolmaker’s upbeat outlook mirrored robust AI demand. However, Pinterest shares experienced a decline of approximately 20% as revenue did not meet expectations, leading analysts to express concerns regarding potential AI risks to its discovery platform. Markets are preparing for the report on January’s consumer price index, the inflation metric preferred by the Federal Reserve in its policy decisions, set to be released on Friday morning.
The primary inflation indicator is poised to influence anticipations regarding an already intricate Federal Reserve policy. The somewhat postponed data will illuminate whether price pressures are becoming less persistently rigid as 2026 commences. Anticipations indicate a deceleration in the yearly CPI rate to approximately 2.5%, and any unexpected developments are poised to influence the already intricate assessments regarding the trajectory of interest rates.
On the earnings front, Rivian shares jumped almost 20% following its fourth quarter earnings beat late Thursday. The electric vehicle manufacturer announced that its R2 midsize model is scheduled for delivery prior to the summer season. Before the bell, attention is focused on Moderna’s report, following a 10% decline in share value this week due to the FDA’s rejection of a new flu vaccine.