U.S. stock futures slipped on Friday morning, signaling the continuation of a rocky week for investors as Wall Street awaits the latest consumer inflation data for clues on the Federal Reserve’s next moves.
Contracts on the S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) futures fell roughly 0.4%, while Nasdaq 100 (NQ=F) futures dropped 0.3%, highlighting renewed pressure on tech shares. The premarket mood reflects a broader caution after yesterday’s sell-off, which extended beyond tech into sectors traditionally considered “safe” from AI disruption, including real estate, logistics, and transportation.
🔹 AI Risks Fuel Sector Rotation
Investors remain wary of the next wave of AI-driven volatility. The so-called “Magnificent Seven” megacaps all finished lower yesterday, as analysts continue to weigh which companies are most exposed to artificial intelligence disruption.
Yet the AI story isn’t all negative. Applied Materials (AMAT) jumped over 10% after posting a strong outlook, driven by robust AI-related demand for chipmaking equipment. In contrast, Pinterest (PINS) tumbled nearly 20% as revenue fell short of expectations and analysts raised concerns about AI threatening its discovery platform.
This bifurcation underscores a “shoot first, ask questions later” mentality in the markets, where earnings surprises can trigger large swings amid heightened uncertainty about AI’s impact on traditional and tech sectors alike.
🔹 Inflation on Watch: CPI Could Set the Tone
All eyes are on Friday’s release of January’s Consumer Price Index (CPI), the Federal Reserve’s preferred gauge of inflation. Expectations point to a slight slowdown in annual inflation to around 2.5%, though any surprise could immediately shift rate expectations and market sentiment.
With markets already grappling with sector-specific disruption, the CPI reading is poised to influence whether the Fed leans toward tighter policy or maintains its cautious stance heading into 2026.
🔹 Premarket Movers to Watch
Earnings catalysts and guidance updates are driving premarket action today:
Rivian (RIVN): Shares surged nearly 20% after beating Q4 estimates, fueled by confidence that its R2 midsize EV will start deliveries before summer.
Moderna (MRNA): Investors await its earnings report after a 10% drop this week following the FDA rejection of a new flu vaccine.
DraftKings (DKNG): Pre-market shares fell 17% as the gambling company missed revenue expectations while stepping up investment in prediction markets.
Roku (ROKU): Shares climbed 15% in premarket trading after beating Q4 estimates and issuing strong guidance for the year ahead.
Maplebear / Instacart (CART): Up 12% premarket after revenue rose 12% to $992 million, despite a $60 million FTC settlement hitting quarterly earnings.
🔹 Market Context: Fear, Greed, and Volatility
Investor caution is also reflected in sentiment metrics: the VIX has hovered near elevated levels after a week of tech-driven turbulence, while the Fear & Greed Index suggests sentiment remains skewed toward extreme caution. This combination reinforces the fragile mood as traders weigh AI disruption risks, inflation signals, and individual earnings surprises.
⚡ Bottom Line
Markets are balancing on a knife-edge between AI optimism and broader economic uncertainty. Tech names remain highly reactive to news, while earnings from Rivian, Roku, and Maplebear could steer premarket momentum. Friday’s CPI reading may serve as the ultimate catalyst for a midterm market pivot, setting the tone for both sector rotation and rate expectations.
Traders are bracing for volatility—any unexpected CPI number or earnings miss could easily extend the week’s downtrend.