US Stock Futures Edge Lower Amid AI Disappointment
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* YM=F -0.06%
* ^GSPC +0.36%
* AMZN +1.13%
* NQ=F +0.00%
* ^DJI -0.28%
US stock futures slipped in premarket trading after Amazon (AMZN) joined Google (GOOG) and other AI-focused Big Tech companies in releasing disappointing projections for the upcoming year. Futures tied to the major indexes were all slightly lower at the open.
Dow Jones Industrial Average futures (YM=F) hovered near flat, while S&P 500 (ES=F) and Nasdaq (NQ=F) futures edged down 0.1%.
Earnings season has been overshadowed by AI discussions after DeepSeek shook the industry. Concerns over soaring AI development costs at Meta (META) and Microsoft (MSFT) have made investors hesitant to continue funding without seeing tangible outcomes.
Amazon's earnings became the latest data point in this narrative, with the tech giant disappointing with its outlook. Shares fell around 4% after the bell Thursday, following similar post-earnings moves from Google and AMD (AMD) earlier this week.
While established companies faced setbacks, AI also enabled some to break open the market. Palantir's (PLTR) military analytics business surged 10% Thursday, adding to a strong rally this week. Pinterest (PINS) also leveraged AI to enhance ad sales, reporting a 19% jump in extended trading.
Unpredictable tariff news from President Donald Trump has kept traders on edge, prompting some to seek refuge in stable assets. Amid the stock sell-off, safe-haven gold (GC=F) has reached all-time highs, though it has retreated somewhat since Thursday's close.
Separately, Trump has targeted hedge funds by proposing to close a loophole that allows fund managers to pay capital gains tax instead of income tax on income from investment activities.
All eyes will be on the January jobs report on Friday morning for insights into the health of the US economy and labor market. Economists anticipate a slowdown in hiring last month, although it is expected to remain robust.