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US stock futures fell on Friday following a tech rout led by chip giant Nvidia (NVDA), with AI skepticism still dogging Wall Street in the wait for a fresh report on inflation.
Dow Jones Industrial Average futures (YM=F) led the retreat, down 0.5%. S&P 500 futures (ES=F) moved 0.3% lower, while those on the Nasdaq 100 (NQ=F) shed 0.2% on the heels of sharp closing losses for the tech-heavy indexes.
AI continues to dictate the conversation, as shares of Block (XYZ) jumped more than 20%.The move came after CEO Jack Dorsey said the company will cut nearly half its workforce, moving from 10,000 to around 6,000, as AI tools reshape how the business will operate. He said he believes “the majority of companies will reach the same conclusion” within the next year.
On Thursday, Nvidia broke a long run of gains to sink 5.5% despite strong earnings, amid mounting skepticism around whether sky-high AI spending can be maintained.
Elsewhere in corporate news, Netflix (NFLX) shares surged after the company said it was dropping out of the battle to acquire Warner Bros. Discovery (WBD), essentially clinching the deal for Paramount Skydance (PSKY).
On the macro front, eyes now turn to January’s producer price index, due Friday morning. Economists expect headline wholesale inflation to rise to 0.3% for the month, with core PPI — which excludes volatile food and energy prices — also forecast to increase to 0.3%.
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Netflix stock jumps after it drops Warner Bros. deal, leaving Paramount the winner
Netflix (NFLX) has walked away from the battle to buy Warner Bros. Discovery (WBD), leaving rival bidder Paramount Skydance (PSKY) free to clinch a $111 billion deal for the storied Hollywood studio.
Shares in Netflix jumped over 8% before the bell on Friday, a sign investors were glad its pursuit had ended. WBD stock fell 2%, while Paramount shares were up 9%.
Bloomberg reports:
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Premarket trending tickers: Intuit, NCR, and Rocket Cos
Intuit (INTU) stock fell 3% before the bell on Friday after reporting stronger-than-expected results for its second quarter revenue, but its outlook for the current quarter missed analyst estimates.
NCR Atleos (NATL) stock jumped 15% during premarket trading after Brinks Co (BCO) announced on Thursday that it will acquire NCR in a cash-and-stock deal valued at $6.6 billion.
Rocket Companies, Inc. (RKT) stock rose 7% during premarket hours after quarterly earnings beat analysts estimates.
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CoreWeave slides as surging capex, backlog risks overshadow small revenue beat
CoreWeave (CRWV) stock fell 9% before the bell on Friday after announcing that it expects its capital expenditure to double in 2026. The AI cloud computing company said it will spend in order to scale up its AI cloud platform in order to manage the computing power that its customers need.
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Block stock soars after Jack Dorsey goes all-in on AI, cuts nearly half of workforce
Block (XYZ) shares surged more than 24% in premarket trading after Jack Dorsey announced the payments company would lay off nearly half of its staff. The move was part of a major bet in artificial intelligence that came alongside the release of its fourth quarter earnings report.
“Today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation,” Dorsey wrote in a post on X on Thursday.
“Something has changed,” Dorsey wrote, framing the decision as a risk intended to position the company for long-term growth. He cited new artificial intelligence tools that can automate work as the reason for the shift, noting that AI is “enabling a new way of working which fundamentally changes what it means to build and run a company.”
In the fourth quarter, Block reported adjusted earnings per share of $0.65, in line with Wall Street estimates. Revenue of $6.25 billion slightly beat expectations of $6.21 billion, according to S&P Global Market Intelligence.
Block also raised its full-year guidance. The company, which supports the CashApp and Square platforms, said it expects gross profit growth of 18% year over year in 2026 and adjusted operating income of $3.20 billion or 26% margin.
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Dell stock surges after revenue forecast tops estimates on rising AI server demand
Dell (DELL) forecast fiscal 2027 revenue above Wall Street estimates on Thursday, betting on growing demand for its artificial intelligence-optimized servers. Its shares rose over 12% in premarket trading.
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Zscaler stock drops on Q2 losses from high expenditure
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Netflix shares leap 13% after hours after dropping bid for Warner Bros.
Bloomberg reports:
