TLDR
- US equity futures dropped Friday morning, with Dow contracts falling over 300 points as concerns intensified over AI-related job losses and tech sector vulnerability following Nvidia’s underwhelming results
- Payment processing company Block announced it would cut roughly 50% of its staff, attributing the move to AI advancement — the stock jumped approximately 20% in pre-market trading
- Bitcoin maintained stability near $68,007 as cryptocurrency markets reflected the cautious tone dominating tech stocks
- January’s Producer Price Index report is due Friday, with economists expecting 0.3% gains in both headline and core wholesale inflation figures
- Berkshire Hathaway’s new CEO Greg Abel will release his first annual shareholder letter on Saturday, alongside the company’s complete 2025 fiscal year earnings
US stock index futures slipped Friday morning as escalating fears about artificial intelligence’s disruption of traditional employment models and corporate structures weighed on investor confidence. The decline built upon Thursday’s disappointing session.
Dow Jones Industrial Average futures fell about 300 points, marking a 0.6% drop. Futures linked to the S&P 500 slid 0.4%, while Nasdaq 100 contracts also declined 0.4%.
The market weakness persisted even after Nvidia posted respectable fourth-quarter earnings Thursday evening. Nevertheless, the results disappointed investors who had anticipated stronger performance, while ongoing anxiety about Big Tech’s massive AI infrastructure investments kept sentiment subdued.
Deutsche Bank analyst Jim Reid noted that recent earnings surprises “weren’t on the scale of what markets got used to in 2023-24.” He also highlighted that the Magnificent Seven tech companies were currently trading over 7% below their October peak levels.
Block, the payment processing and financial technology company co-founded by Jack Dorsey, revealed intentions to slash its workforce by roughly 50%. The drastic restructuring was attributed to artificial intelligence’s ability to fundamentally reshape its business operations.
Dorsey predicted that most companies would execute similar staff reductions within the next year. Ironically, Block’s stock price soared approximately 20% in pre-market trading after the disclosure.
The job cuts amplified a week already filled with growing anxiety about AI’s capacity to displace workers across multiple service industries, including software engineering, financial consulting, and real estate sectors.
Crypto Follows Risk-Off Mood
Bitcoin traded relatively flat at $68,007 over the 24-hour period concluding Friday morning. The dominant digital currency has been tracking broader market trends, which turned more risk-averse this week.
Ethereum and XRP similarly posted losses alongside Bitcoin earlier in the week, with digital asset gains unwinding in sync with the technology stock selloff.
The US dollar index decreased 0.1% against a collection of major international currencies. The benchmark 10-year US Treasury yield held steady at 4.01%, after previously touching a three-month low under the 4% mark.
Commodity prices edged slightly higher. Brent crude rose 0.5% to $71.22 per barrel, while West Texas Intermediate increased 0.7% to $65.65, as traders watched the conclusion of US-Iran nuclear talks that ended without a deal.
PPI Data and Berkshire Letter Ahead
January’s Producer Price Index was scheduled for release Friday morning. Analysts predicted monthly gains of 0.3% for both headline and core PPI readings.
In other corporate news, Netflix shares rose after the streaming company backed away from its bid for Warner Bros. Discovery. The move leaves Paramount Skydance, affiliated with Oracle, as the likely buyer of the media company.
Greg Abel, Berkshire Hathaway’s newly installed CEO, is expected to issue his first annual letter to shareholders on Saturday. The communication will be released alongside the holding company’s quarterly report and full 2025 financial year earnings, representing Abel’s inaugural report since taking over from Warren Buffett.
