Futures linked to the DOW JONES index fell 0.70% to 49,155.10 points, while those of the S&P 500 lost 0.51%, to 6,873.50 points. NASDAQ 100 futures fell 0.51% to 24,906.60 points.
Wall Street is coming off a mixed day yesterday, Thursday: the DOW JONES managed to rise a slight 0.03%, marking its third consecutive day in the green, supported by the good performance of the banks. However, the S&P 500 fell 0.54% and the technological Nasdaq fell 1.18% in another day of punishment for values linked to artificial intelligence.
S&P 500 and Nasdaq were heavily weighed down by NVIDIA and technology stocks in general. The semiconductor giant ended up losing 5.46% in the regular day despite beating market expectations with its quarterly results. Some attribute these declines to doubts over NVIDIA’s deal with OpenAI, as well as weakness in the artificial intelligence market and concerns about high AI capital investments by hyperscalers.
The truth is that Thursday’s session also saw investors flock to more cyclical sectors of the market, such as financial or industrial sectors, in a trend that is becoming more and more pronounced in the market. This Friday is the last trading day of February, and the month has been especially rocky for tech stocks amid fears of AI disruption. Therefore, the Nasdaq Composite headed for a 2.5% drop, its worst monthly performance since March of last year. The S&P 500 is on track for a 0.4% loss in February. However, the DOW JONES is on track for a 1.2% advance through yesterday’s close.
“Investors are holding back their positions as uncertainty increases,” explains Sameer Samana, director of global equities and real assets at Wells Fargo Investment Institute, in statements to CNBC. Samana is confident that the growth of the economy and corporate profits will lead the S&P 500 to overcome short-term problems and surpass current levels.
On the macroeconomic agenda this Friday, investors will know the producer price index (PPI) of January. Economists surveyed by Dow Jones forecast a reading of 0.3% for the headline index, while the core PPI, which excludes energy and food prices, will also come in at 0.3%.
Meanwhile, tensions around US President Donald Trump’s tariff policies and relations between the US and Iran also remain on the minds of investors.
In the business field, one of the big stars of the morning is Netflix, which skyrocketed 7% in the stock market. The streaming giant has backed out of its bid for Warner Bros. Discovery studio and streaming assets after the latter’s board of directors opted for an updated offer from Paramount Skydance.
On Tuesday, Warner announced that Paramount Skydance had raised its takeover offer to $31 per share, up from $30 per share previously. The board reviewed the updated offer under the terms of its existing agreement with Netflix and ultimately determined it to be superior Thursday.
“We have always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” Netflix said in a statement Thursday. Instead, it will continue to invest in its business, including nearly $20 billion this year in movies, series and other entertainment offerings.
Paramount Skydance rises 6.44% in the New York morning, while Warner falls 1.5%.
CoreWeave shares plunge 9% after announcing that it expects its capital spending (Capex) to double in 2026. The AI cloud computing company said it will spend to expand its AI cloud platform to manage the computing power its customers need.
The company expects capital spending of between $30 billion and $35 billion in 2026, up from $14.9 billion in 2025, driven by NVIDIA’s purchases of artificial intelligence chips, the rapid construction of data centers and the acquisition of energy to power them.
Block Shares Soar More Than 24% After Jack Dorsey has announced that the payments company will lay off almost half of its staff. This decision, which is part of a major commitment to artificial intelligence, coincides with the publication of its fourth quarter results report.
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 exceeded analyst consensus expectations of $6.21 billion.
Dell has predicted FY2027 revenue above Wall Street estimates, betting on a growing demand for its servers optimized for artificial intelligence. The technology company expects annual revenue of between $138 billion and $142 billion, above analysts’ average estimate of $125.54 billion. Shares rise more than 10% in New York morning.
Live Nation shares react with increases to a upgrade of Rothschild & Co. Redburn recommendation to ‘buy’‘ from ‘neutral’. The firm also raises its price target from $166 to $193, indicating an upside potential of 22.2% from Thursday’s close.
In raw materials markets, oil prices are rising sharply, with investors awaiting developments in talks between the US and Iran over the OPEC member’s nuclear program. US West Texas oil futures are up 2.36% to $66.75 per barrel, while international benchmark Brent is trading at $72.44 per barrel, up 2.26%.
The exchange rate between the euro and the dollar stands without much movement at 1.1799 dollars for each single currency.