US Stock Futures Dip as Amazon Disappoints
Futures on major US indices opened slightly lower as Amazon's earnings outlook weighed on sentiment.
AI Woes Dominate Earnings Season
Disappointing projections from Google, Amazon, and other AI-focused tech giants have raised concerns among investors about sky-high AI development costs and potential returns.
Amazon's Earnings Disappoint
Amazon's shares fell 4% after it reported weaker-than-expected guidance, mirroring post-earnings declines from Google and AMD earlier this week.
AI Sparks Opportunities
Despite setbacks at major companies, AI has opened up opportunities for others. Palantir's military analytics business surged 10%, while Pinterest used AI to boost ad sales, resulting in a 19% jump in after-hours trading.
Tariff Uncertainty and Gold Prices
Unpredictable tariff news from President Trump has led traders to seek stability in assets such as gold, which reached all-time highs before a slight pullback.
Hedge Fund Loophole Targeted
Trump has proposed closing a loophole that allows hedge fund managers to pay lower capital gains tax rates, drawing attention to the sector.
Jobs Report Anticipated
Investors will closely watch the January jobs report on Friday for insights into the health of the US economy and labor market. Economists predict slower but still robust hiring.