US stocks fell overnight Thursday following a tech rout led by chip giant Nvidia (NVDA), as Wall Street struggled to regain its footing ahead of a fresh inflation report.
Contracts linked to the Dow Jones Industrial Average (YM=F) fell about 0.6%. Futures tied to the S&P 500 (ES=F) declined 0.4%, and Nasdaq 100 (NQ=F) futures slipped 0.3% after Thursday’s regular session saw sharp losses for the tech-heavy indexes.
Nvidia (NVDA) broke an extended streak of gains and sank 5.5% despite delivering stronger-than-expected fourth-quarter results and upbeat guidance. The decline reflected mounting skepticism around whether sky-high spending can be maintained against the desires of an ever-hungry investor market.
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 0.3% for the month, with core PPI, prices excepting food and energy, also forecast to increase 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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