US Stock Futures Decline as Amazon's Disappointing Outlook Weighs
US stock futures edged lower during premarket trading after Amazon (AMZN) released disappointing financial projections, joining other AI-focused tech giants such as Google (GOOG).
* Dow Jones Industrial Average (YM=F) futures remained near the flatline.
* S&P 500 (ES=F) futures and Nasdaq (NQ=F) futures declined slightly by 0.1%.
AI discussions have dominated earnings season following the industry-shaking announcement from DeepSeek. Investor anxiety has mounted due to concerns over soaring AI development costs at Meta (META) and Microsoft (MSFT), leading to reluctance to continue funding without tangible results.
Amazon's earnings report added to this narrative, with the tech behemoth falling short of expectations in its outlook. Shares dropped approximately 4% after Thursday's closing bell, echoing similar post-earnings reactions from Google and AMD (AMD) earlier in the week.
* Palantir (PLTR) saw a 10% surge in its stock price Thursday, driven by its military analytics business, offsetting some of the losses.
* Pinterest (PINS) also benefited from AI integration, with a 19% jump in extended trading after leveraging AI to enhance its advertising revenue.
Amidst volatile tariff headlines from President Trump, traders have flocked to safer assets. Gold (GC=F) has surged to all-time highs, retreating slightly after Thursday's closing.
Meanwhile, Trump has targeted hedge funds, announcing plans to close a loophole that allows fund managers to pay capital gains tax instead of income tax on investment income.
All eyes will be on Friday's January jobs report for insights into the health of the US economy and labor market. Economists anticipate a slowdown in hiring but expect it to remain strong.