TLDR
- Stock futures in the US declined Friday morning, with Dow futures sliding more than 300 points amid AI-related job displacement concerns and tech sector weakness driven by Nvidia
- Block revealed plans to eliminate approximately half of its employees, citing AI-driven business transformation — shares surged roughly 20% in premarket hours
- Bitcoin held steady at $68,007 as digital assets mirrored broader risk-averse market conditions and declining technology equities
- The Producer Price Index (PPI) for January arrives Friday, with analysts projecting 0.3% increases in both headline and core wholesale inflation metrics
- Greg Abel, Berkshire Hathaway’s newly appointed CEO, will release his inaugural shareholder letter Saturday with the company’s full 2025 financial performance
Equity futures in the United States tumbled Friday morning as anxiety surrounding AI-driven workforce disruption and business transformation intensified market pressure. The downturn extended losses from Thursday’s challenging trading session across major indices.
Futures tied to the Dow Jones Industrial Average retreated approximately 300 points, representing a 0.6% decline. S&P 500 futures decreased 0.4%, while Nasdaq 100 futures dropped by an identical 0.4%.
The selloff persisted despite Nvidia delivering robust fourth-quarter financial results on Thursday evening. Market participants had anticipated even more impressive numbers, and persistent worries about substantial Big Tech capital expenditures on AI infrastructure maintained a cautious market atmosphere.
Jim Reid, an analyst at Deutsche Bank, observed that earnings beats “weren’t on the scale of what markets got used to in 2023-24.” He further noted that the Magnificent Seven technology stocks were now trading over 7% beneath their October highs.
Block, the payments technology firm co-created by Jack Dorsey, revealed it would eliminate nearly half of its employee base. The organization attributed the dramatic workforce reduction to AI’s capacity to fundamentally transform its operational requirements.
Dorsey expressed his belief that most corporations will implement comparable workforce reductions over the coming year. Paradoxically, despite the substantial job eliminations, Block’s shares rocketed approximately 20% higher during premarket trading.
The disclosure amplified a week of mounting anxiety that artificial intelligence will eliminate positions across numerous service sectors, including software development, financial advisory services, and property transactions.
Crypto Follows Risk-Off Mood
Bitcoin remained unchanged at $68,007 during the 24-hour period ending Friday morning. The leading cryptocurrency has been mirroring wider market dynamics, which shifted to caution throughout the week.
Ethereum and XRP similarly declined in tandem with Bitcoin during earlier trading sessions, with cryptocurrency advances reversing alongside the technology stock retreat.
The US dollar weakened 0.1% against a collection of major currencies. The 10-year US Treasury bond yield remained stable at 4.01%, following an earlier drop to a three-month minimum below the 4% threshold.
Crude oil prices ticked upward. Brent crude advanced 0.5% to reach $71.22 per barrel, while West Texas Intermediate climbed 0.7% to $65.65, as market participants monitored unsuccessful US-Iran nuclear negotiations.
PPI Data and Berkshire Letter Ahead
The Producer Price Index report for January was set for publication Friday morning. Economic forecasters anticipated both headline and core PPI readings at 0.3% on a month-over-month basis.
In additional corporate developments, Netflix stock appreciated after the streaming giant withdrew its acquisition interest in Warner Bros. Discovery. This development positioned Paramount Skydance, associated with Oracle, as the probable acquirer of the entertainment conglomerate.
Greg Abel, Berkshire Hathaway’s chief executive officer, is scheduled to publish his first annual letter to shareholders on Saturday. The communication will accompany the conglomerate’s quarterly financial statements and complete 2025 annual results, representing Abel’s inaugural report since succeeding Warren Buffett.
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