US stock futures slid following a tech rout led by chip giant Nvidia (NVDA), as Wall Street struggled to regain its footing ahead of a fresh inflation report.
Dow Jones Industrial Average futures (YM=F) led the small losses, falling 0.4%. S&P 500 futures (ES=F) edged 0.2% lower, while those on the Nasdaq 100 (NQ=F) were little changed on the heels of sharp closing losses for the tech-heavy indexes.
Nvidia broke a long run of gains to sink 5.5% despite delivering stronger-than-expected fourth-quarter results and upbeat guidance. The pullback reflected mounting skepticism around whether sky-high AI spending can be maintained.
Beyond spending, AI also continues to dictate the conversation around jobs and automation, as shares of Block (XYZ) jumped more than 23% after-hours. The move came after CEO Jack Dorsey announced on X that the company will cut nearly half its workforce, moving from 10,000 to around 6,000, as AI tools reshape how the business will operate. He said he believes “the majority of companies will reach the same conclusion” within the next year.
On the macro front, eyes now turn to January’s producer price index, due Friday morning. Economists expect headline wholesale inflation to rise to 0.3% for the month, with core PPI — which excludes volatile food and energy prices — also forecast to increase to 0.3%.
With Nvidia being the final “Magnificent Seven” megacap company to report, earnings season is entering its final stretch. Elsewhere in corporate news, Netflix (NFLX) shares surged after the company said it was dropping out of the battle to acquire Warner Bros. Discovery (WBD), essentially clinching the deal for Paramount Skydance (PSKY).
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