Stock futures maintained a steady stance late Thursday following a challenging day for the U.S. stock market. Traders were poised for a crucial consumer inflation report set to be released Friday morning. The S&P 500 futures edged up by 0.02%, while Nasdaq 100 futures saw a slight increase of 0.04%. In contrast, futures related to the Dow Jones Industrial Average exhibited minimal fluctuations.
In after-hours trading, semiconductor heavyweight Applied Materials experienced a striking surge of 13% after delivering a robust earnings report coupled with a promising outlook. Similarly, shares of Airbnb climbed approximately 4%, as market participants responded positively to the rental platform’s optimistic guidance. Conversely, Pinterest saw a significant decline of 17% following fourth-quarter results that fell short of expectations, alongside a disappointing forecast.
On Thursday, major U.S. stock averages grappled with declines, largely fueled by growing apprehensions surrounding potential disruptions from artificial intelligence, particularly affecting sectors such as real estate, trucking, and software. The S&P 500 recorded a nearly 1.6% decrease, while the Nasdaq Composite faced a loss of about 2%. The Dow Jones Industrial Average dropped nearly 670 points, marking a 1.3% decline. All seven of the prominent tech companies, referred to as the “Magnificent Seven,” concluded the day in negative territory. Notably, Cisco Systems plummeted by 12% due to the company’s disappointing guidance, negatively impacting the overall market sentiment. Apple also faced a setback, losing 5% during the session, which marked its most significant single-day loss since April 2025.
Addressing the current market conditions, Brian Levitt, a global market strategist at Invesco, expressed perspective on CNBC’s “Closing Bell.” He acknowledged the market’s current challenges, particularly regarding certain stocks involved in the AI hype, but emphasized that the broader indicators of market health remain relatively stable. “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… There is, obviously, some carnage underneath, but in general, this is not an AI bubble. The markets are holding up very nicely,” Levitt stated.
Looking ahead, analysts awaited the release of January’s consumer price index report, which is anticipated to reveal a 2.5% year-over-year increase in inflation, with economists also projecting a month-over-month rise of 0.3%. As the week closes, the three major stock averages are on track for losses, with the S&P 500 and Dow down more than 1% since the week’s beginning. The Nasdaq is expected to see a decline of roughly 1.9% for the week.
