S&P futures experienced a decline on Friday morning following a lackluster performance in the U.S. stock market the previous day. Market participants are anticipating a significant consumer inflation report scheduled for release on Friday morning. S&P 500 futures declined by 0.17%, whereas Nasdaq 100 futures experienced an increase of 0.19%. Futures associated with the Dow Jones Industrial Average experienced a decline of 0.16%, equating to a decrease of 81 points. In after-hours trading, semiconductor giant Applied Materials experienced a 13% increase, driven by robust earnings results and a positive outlook. Airbnb experienced a rise of approximately 4% as investors responded positively to the rental company’s optimistic guidance. Pinterest experienced a decline of 17% following fourth-quarter results that fell short of expectations, accompanied by a lackluster forecast.
On Thursday, significant declines were observed in major U.S. averages, driven by growing concerns regarding the disruptive potential of artificial intelligence, particularly impacting the real estate, trucking, and software sectors. The S&P 500 experienced a decline of nearly 1.6%, whereas the Nasdaq Composite registered a loss of approximately 2%. The Dow Jones Industrial Average declined by nearly 670 points, representing a decrease of 1.3%. All of the “Magnificent Seven” tech giants ended the trading session with losses. A 12% decline in Cisco Systems, attributed to the company’s lackluster guidance, exerted pressure on the overall market. Apple experienced a decline of 5% during the regular trading session, marking its most significant single-day loss since April 2025.
“In terms of an AI bubble, the reality is there’s some steam coming out of certain names as the market tries to determine winners and losers and is becoming more discriminate,” stated Brian Levitt. “But the Dow Jones Industrial Average is close to 50,000.” The S&P 500 hovers near 6,900… There is, undoubtedly, some turmoil beneath the surface; however, overall, this does not constitute an AI bubble. The markets are exhibiting considerable resilience,” he continued.
On Friday, the market anticipates a significant catalyst with the forthcoming release of January’s consumer price index report. The inflation gauge is anticipated to reflect a 2.5% increase compared to the previous year, as indicated by economists. On a month-over-month basis, there is an expectation for a 0.3% increase. The three major averages are trending towards weekly losses, with the S&P 500 and Dow down more than 1% as of Thursday’s close. The Nasdaq is poised to experience a 1.9% decrease during this timeframe.