U.S. Stock Futures Dip as AI-Focused Giants Disappoint
U.S. stock futures opened marginally lower as market sentiment was dampened by disappointing earnings projections from Amazon (AMZN) and other AI-driven tech companies.
Key Index Futures
* Dow Jones Industrial Average futures (YM=F): Flat
* S&P 500 futures (ES=F): -0.1%
* Nasdaq futures (NQ=F): -0.1%
Earnings Season Dominated by AI
AI discussions have taken center stage during earnings season, with Meta (META) and Microsoft (MSFT) facing scrutiny over escalating development costs. Investors have expressed reluctance to continue funding AI initiatives without tangible returns.
Amazon's Disappointing Outlook
Amazon's latest earnings report added to the narrative, with the tech giant disappointing investors with its outlook. Shares declined 4% after the earnings release on Thursday, echoing similar post-earnings reactions from Google and AMD (AMD) earlier this week.
Bright Spots in AI
Despite setbacks for established companies, AI has fueled growth for others. Palantir's (PLTR) military analytics business surged 10% on Thursday, extending its rally this week. Pinterest (PINS) also utilized AI to enhance ad sales, reporting a 19% increase in extended trading.
Market Volatility and Safe Havens
Unpredictable tariff announcements from President Donald Trump have kept traders on edge and pushed some toward stable assets. As stocks have faltered, gold (GC=F) has reached all-time highs before pulling back on Thursday.
Focus on Hedge Funds and January Jobs Report
Trump's announcement targeting a loophole that allows hedge fund managers to pay lower taxes has drawn attention to the industry. On Friday, the January jobs report will provide insights into the health of the U.S. economy and labor market. Economists anticipate a slowdown in hiring but still expect robust growth.