U.S. stock futures showed signs of recovery early Friday, inching higher after a challenging week for technology stocks. The S&P 500 futures rose by 0.4%, while the Nasdaq 100 futures added approximately 0.6%, reversing some premarket losses. The Dow Jones Industrial Average futures also turned positive, gaining 0.4%, following sharp declines across major indices on Thursday.
Investors are looking for a rebound as executives from major technology firms downplay concerns regarding the disruptive impact of artificial intelligence and increased spending in the sector. However, despite the upward movement in futures, the S&P 500 and Nasdaq Composite are anticipated to close the week in the red, contributing to a downturn that has brought them into negative territory for 2026.
The overall market sentiment has shifted slightly toward risk-taking, evident in the rise of bitcoin, which climbed back above $65,000 after previously hitting a 16-month low. Nonetheless, the cryptocurrency is set to record its worst weekly performance since 2022, having lost all its gains made post-Trump’s election.
In related news, Strategy (MSTR), significantly influenced by the recent cryptocurrency downturn, reported a quarterly loss linked to the steep bitcoin price drop. Despite the negative report, its stock surged over 6% in premarket trading, buoyed by bitcoin’s recovery and the CEO’s reassurances regarding debt concerns.
Amid these fluctuations, some tech stocks faced challenges. Amazon (AMZN) saw its shares drop 8% after its earnings report revealed plans to ramp up spending to at least $200 billion by 2026, conflicting with a forecast that missed expectations for operating income.
In the automotive sector, Stellantis (STLA) issued a warning that it would incur a charge exceeding €22 billion ($26 billion) as part of a strategy to reduce its electric vehicle (EV) initiatives. As a result, shares of the Jeep maker plummeted over 20% on Wall Street and in Milan, exacerbating a week characterized by volatility among EV manufacturers, which included a $60 billion loss for Chinese carmaker BYD.
Commodities also reflected some instability as silver prices resumed their decline amid continued selling pressure from China ahead of a national holiday.
Looking ahead, the much-anticipated January jobs report, originally scheduled for release on Friday, has been postponed until Wednesday next week. Recent data has already indicated potential trouble in the labor market, with job openings falling to their lowest levels since 2020 and a rise in layoff announcements.
In another notable development, Hims & Hers Health (HIMS) and Novo Nordisk (NVO) experienced contrasting fortunes following the FDA’s announcement to target illegal copycat drugs in the weight-loss segment. Hims & Hers announced plans to introduce a compounded weight-loss pill, which drew scrutiny and backlash from Novo Nordisk, resulting in a 7% drop for Hims & Hers and a 7% increase for Novo Nordisk.
Several stocks were heavily impacted during premarket trading on Friday. Molina Healthcare (MOH) saw its stock plummet by 28% after projecting profits for 2026 that fell short of analysts’ expectations. Doximity (DOCS) experienced a 30% drop after lowering its sales projections, and Coty (COTY) shares fell 13% following the withdrawal of its fiscal year guidance.
Despite ongoing crypto pessimism, Strategy’s stock rose 6% as the firm navigates a broader sell-off. CEO Michael Saylor remains optimistic amidst a challenging landscape, urging his followers to “HODL” their cryptocurrencies.
The market also reacted to Stellantis’ announcement regarding its EV strategy, resulting in substantial losses for the company and bringing attention to wider industry concerns.
Meanwhile, Reddit’s stock experienced a boost of 7% after reporting positive fourth-quarter results and issuing optimistic guidance, highlighting the effectiveness of AI tools used for attracting marketers to its platform.
As the market navigates through these turbulent times, it remains to be seen how companies and investors will adapt to the evolving economic landscape.
