Stock market futures dropped Friday morning as mounting concerns about artificial intelligence investments continued to batter technology companies, putting the Nasdaq on track for its worst monthly decline since March 2025. Investors are also waiting for crucial inflation data expected later today.
Tech companies have experienced significant volatility throughout February as market participants question whether the massive investments in AI technology will deliver expected returns.
Adding to market uncertainty, tariff disputes have created additional instability after the Supreme Court struck down most trade duties imposed by President Trump last year. Trump responded by implementing a temporary 10% global tariff that took effect Tuesday.
Nvidia shares rose slightly by 0.4% in early trading after dropping more than 5% Thursday despite reporting strong financial results, indicating continued nervousness around AI-related investments.
Cloud security company Zscaler saw shares fall 9.1% after reporting larger second-quarter losses, while financial software maker Intuit declined 3.6% following profit forecasts that missed analyst expectations.
Software companies have faced particular pressure this year amid fears that AI technology could disrupt entire industries. Financial services, data analysis, legal work, real estate, and trucking sectors are also feeling the impact of AI-related concerns.
Both the S&P 500 and Nasdaq posted losses in Thursday’s session, with the Nasdaq finishing below a key technical indicator for the 17th consecutive day. This moving average is considered an important measure of market direction.
Economic data scheduled for release before market opening includes January producer price information, which could provide clues about Federal Reserve interest rate decisions.
As of 6:00 a.m., Dow futures had fallen 271 points or 0.55%, while S&P 500 futures dropped 24.75 points or 0.36%, and Nasdaq 100 futures declined 78 points or 0.31%.
Most large technology and growth companies showed early losses, including major semiconductor firms AMD and Broadcom.
Netflix jumped 7.4% after announcing its withdrawal from bidding for Warner Bros Discovery assets, which fell 2%. Meanwhile, Paramount Skydance gained 7.8% after successfully acquiring valuable television and film properties.
Payment company Block soared nearly 19% following news it will eliminate over 4,000 positions, roughly half its workforce, as part of a restructuring plan to integrate AI throughout its operations.
Computer manufacturer Dell climbed 10.6% after projecting that revenue from AI-focused server products will double by fiscal 2027 and announcing increased shareholder returns.
Language learning platform Duolingo tumbled almost 25% after providing disappointing forecasts for first-quarter and 2026 booking expectations.
