U.S. Stock Futures Await Jobs Report Amid Amazon's Disappointing Outlook
U.S. stock futures held steady on Friday as investors awaited the key January nonfarm payrolls report and grappled with Amazon's (AMZN) subdued revenue guidance.
Futures Contracts Hold Near Level
Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) hovered near the flatline, while Dow Jones Industrial Average futures (YM=F) saw minimal change following a mixed session on Wall Street.
Jobs Report in Focus
The highly anticipated jobs report is expected to show an addition of 170,000 jobs in January, a slowdown from December's 256,000 when the data is released at 8:30 a.m. ET. However, economists anticipate that the report may not significantly alter the Federal Reserve's stance, with no rate cut likely until its June meeting.
Amazon's Revenue Concerns Weigh
Amazon's stock dipped around 4% in after-hours trading following its earnings report. Investors expressed concerns about the company's revenue outlook, echoing similar declines in Google (GOOG) and AMD (AMD) amidst apprehension about increased spending on AI development.
Earnings Season Nears End
Despite Amazon's challenges, the major stock indices are poised to end the earnings-intensive week with slight gains. However, President Trump's ongoing tariff announcements and plans to cap a tax deduction for hedge funds have kept volatility elevated.
Hong Kong Tech Stocks Soar
In other markets, Chinese tech stocks traded in Hong Kong rallied on the DeepSeek AI model's positive impact on internet companies. The Hang Seng Tech Index surged by 2.5%, marking a year-to-date increase of 20%.
Amazon Cautions on AI Demand
Meanwhile, Amazon has warned of potential capacity constraints in its cloud computing business in 2025 despite its plans for a $100 billion investment this year. The investment will focus on data center expansion, chip development, and infrastructure for AI services.