TLDR
Wall Street futures declined Friday morning, with Dow futures shedding more than 300 points amid growing anxieties over AI-driven workforce disruption and technology sector weakness highlighted by Nvidia’s performance
Fintech company Block revealed plans to eliminate approximately 50% of its employees, citing AI capabilities as a driver for restructuring — shares surged roughly 20% before the opening bell
Bitcoin held steady around $68,007 as digital assets mirrored the cautious sentiment pervading technology equities
The Producer Price Index for January is scheduled for release Friday, with analysts projecting 0.3% increases for both headline and core wholesale inflation measures
Greg Abel, Berkshire Hathaway’s newly appointed CEO, is set to unveil his inaugural annual letter to shareholders Saturday, coinciding with the release of the company’s full-year 2025 financial results
Equity futures across major US indices retreated Friday morning as mounting concerns about artificial intelligence’s impact on employment and corporate structures continued to pressure market sentiment. The weakness extended losses from a difficult Thursday trading session.
Futures contracts tied to the Dow Jones Industrial Average decreased approximately 300 points, representing a 0.6% decline. S&P 500 futures retreated 0.4%, while Nasdaq 100 futures similarly lost 0.4%.
The pullback occurred despite Nvidia delivering solid fourth-quarter financial results Thursday evening. However, the numbers fell short of the elevated expectations investors had developed, while persistent worries about excessive AI infrastructure spending by technology giants maintained a cautious atmosphere.
Jim Reid, an analyst at Deutsche Bank, observed that recent earnings beats “weren’t on the scale of what markets got used to in 2023-24.” He further pointed out that the Magnificent Seven technology stocks were currently trading more than 7% beneath their October highs.
Block, the payments and financial services firm co-created by Jack Dorsey, announced plans to reduce its employee count by approximately half. The company attributed the dramatic reorganization to artificial intelligence’s capacity to fundamentally transform its operational requirements.
Dorsey projected that most corporations will implement comparable workforce reductions over the coming twelve months. Paradoxically, Block’s shares jumped roughly 20% in premarket activity following the announcement.
The workforce reduction intensified an ongoing week of heightened concerns regarding AI’s potential to eliminate positions across numerous service sectors, encompassing software development, financial advisory services, and property markets.
Crypto Follows Risk-Off Mood
Bitcoin remained relatively unchanged at $68,007 during the 24-hour period ending Friday morning. The leading cryptocurrency has been moving in tandem with broader market dynamics, which adopted a more defensive posture this week.
Ethereum and XRP also experienced declines alongside Bitcoin during the earlier part of the week, with cryptocurrency advances reversing in alignment with the technology stock retreat.
The US dollar weakened 0.1% relative to a basket of major global currencies. The yield on 10-year US Treasury bonds remained stable at 4.01%, following an earlier dip to a three-month low beneath the 4% threshold.
Energy prices moved modestly higher. 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 the conclusion of US-Iran nuclear negotiations that failed to produce an agreement.
PPI Data and Berkshire Letter Ahead
The Producer Price Index report for January was slated for publication Friday morning. Economic forecasters anticipated monthly increases of 0.3% for both the overall and core PPI measurements.
In additional corporate developments, Netflix equity gained value after the streaming giant withdrew from its pursuit of Warner Bros. Discovery. This decision positioned Paramount Skydance, connected to Oracle, as the probable acquirer of the entertainment studio.
Greg Abel, who recently assumed the role of Berkshire Hathaway CEO, is anticipated to publish his debut annual shareholder communication on Saturday. The letter will accompany the conglomerate’s quarterly financial statement and complete 2025 fiscal year results, marking Abel’s first such report since succeeding Warren Buffett.
