Futures Pointing To Sharply Lower Open On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a sharply lower open on Friday, with stocks likely to extend the pullback seen in the previous session.

The futures saw further downside following the release of a Labor Department report showing producer prices in the U.S. increased by more than expected in the month of January.

The report said the Labor Department's producer price index for final demand climbed by 0.5 percent in January after rising by a downwardly revised 0.4 percent in December.

Economists had expected producer prices to rise by 0.3 percent compared to the 0.5 percent increase originally reported for the previous month.

The Labor Department also said the annual rate of producer price growth edged down to 2.9 percent in January from 3.0 percent in December. Economists had expected yearly growth to slow to 2.8 percent.

Lingering concerns regarding AI-related layoffs and disruptions may also weigh on Wall Street after Block (XYZ) said it is cutting its workforce by nearly half.

Block CFO Amrita Ahuja said the payments company sees an "opportunity to move faster with smaller, highly talented teams using AI to automate more work."

After moving sharply higher over the two previous sessions, stocks gave back some ground during trading on Thursday. The tech-heavy Nasdaq showed a significant move to the downside, although the Dow managed to end the day slightly higher.

The Nasdaq climbed well off its early lows but still slumped 273.69 points or 1.2 percent to 22,878.38. The S&P 500 also fell 37.27 points or 0.5 percent to 6,908.86, but the narrower Dow inched up 17.05 points or less than a tenth of a percent to 49,499.20.

The pullback on Wall Street came amid a negative reaction to earnings news from Nvidia (NVDA), with the artificial intelligence chipmaker tumbling by 5.5 percent.

Shares of Nvidia pulled back off their best closing level in over three months even though the company reported better than expected fiscal fourth quarter results and provided upbeat guidance.

"It says a lot when a stock market darling beating revenue forecasts by billions of dollars can no longer muster a positive share price reaction," said Dan Coatsworth, head of markets at AJ Bell. "The mood music is changing on Nvidia, and it represents a significant shift in investor sentiment."

He added, "The focus has now shifted to growing competition, concerns about excessive levels of investment across the AI space either being unsustainable or unnecessary, and whether the party will end in tears."

Nvidia helped to lead the semiconductor sector lower, as reflected by the 3.2 percent plunge by the Philadelphia Semiconductor Index. The index ended the previous session at a record closing high.

Networking stocks also showed a notable move to the downside, contributing to the slump by the tech-heavy Nasdaq.

Outside the tech sector, gold stocks surged despite a decrease by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.9 percent to a record closing high

Airline stocks also saw significant strength on the day, resulting in a 2.3 percent jump by the NYSE Arca Airline Index.

The uptick by the Dow partly reflected a sharp increase by shares of Salesforce (CRM), with the customer service software maker spiking by 4.0 percent after reporting better than expected fourth quarter results.

On the U.S. economic front, a report released by the Labor Department showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended February 21st.

The Labor Department said initial jobless claims rose to 212,000, an increase of 4,000 from the previous week's revised level of 208,000.

Economists had expected jobless claims to climb to 215,000 from the 206,000 originally reported for the previous week.

Commodity, Currency Markets

Crude oil futures are soaring $2.39 to $67.60 a barrel after slipping $0.21 to $65.21 a barrel on Thursday. Meanwhile, after falling $32 to $5,194.20 ounce in the previous session, gold futures are climbing $44.20 to $5,238.40 an ounce.

On the currency front, the U.S. dollar is trading at 156.13 yen versus the 156.11 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1787 compared to yesterday's $1.1797.

Asia

Asian markets ended mostly higher on Friday, even as Nvidia's strong earnings and guidance failed to dispel investor fears over the durability of an AI boom.

The Japanese yen and U.S. Treasuries rose in Asian trading, while gold held steady a tad below $5,200 an ounce.

Oil prices edged up slightly after diplomatic efforts between the United States and Iran aimed at easing tensions over Tehran's nuclear program concluded on Thursday without an agreement.

Following meetings in Switzerland, an Omani mediator involved in the negotiations said the talks led to understanding on some issues and that the next round of talks will take place next week in Vienna.

Elsewhere, Pakistan has declared an open war against Afghanistan, launching Operation Ghazab Lil Haq with extensive airstrikes against Taliban targets in Kabul, Kandahar and Paktia amid fierce border clashes.

China's Shanghai Composite Index closed up 0.4 percent at 4,162.88 after a choppy session. Traders braced for the country's key Two Sessions meeting due next week, where policymakers are expected to set economic targets and outline policy plans.

Hong Kong's Hang Seng Index jumped 1 percent to 26,630.54 ahead of upcoming earnings releases. Baidu ended on a flat note despite posting a steep 42 percent drop in quarterly profit. HSBC added 1.6 percent after annual profits for 2025 exceeded expectations.

Japanese markets eked out modest gains to notch another record close even as chip names lagged on concerns over intensifying competition.

The Nikkei 225 Index edged up by 0.2 percent to 58,850.27 after data showed Tokyo's core inflation gauge eased to the slowest pace in more than a year.

Separate reports revealed Japanese industrial output in January surged 2.2 percent from the previous month, marking the first expansion in three months. Retail sales shot up 1.8 percent year-on-year, rebounding from a 0.9 percent decline in December.

The broader Topix Index jumped 1.5 percent to 3,938.68. Sony shares soared 7.2 percent after the conglomerate expanded its ongoing share buyback program.

Seoul stocks fell from a record high as sentiment was weighed down by a muted reaction to Nvidia's earnings. The Kospi dropped 1 percent to 6,244.13 after six days of gains. Technology and other large-cap stocks paced the decliners.

Australian markets ended higher, supported by gains in the mining sector. The benchmark S&P/ASX 200 Index rose 0.3 percent to 9,198.60, while the broader All Ordinaries Index settled 0.3 percent higher at 9,435.60.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index closed up 0.4 percent at 13,722.97, reversing morning losses.

Europe

European stocks are turning in a mixed performance on Friday amid lingering concerns regarding artificial-intelligence related layoffs and workforce disruption.

Block, led by Twitter co-founder and CEO Jack Dorsey, has announced its decision to lay off 40 percent of its workforce because of labor-saving artificial intelligence.

In economic news, consumer confidence in the United Kingdom dropped to a three-month low in February, defying expectations for a modest improvement.

The U.K. consumer confidence index fell to -19 from -16 in January, the Consumer Confidence Barometer survey by the GfK and the Nuremberg Institute for Market Decisions (NIM) revealed, while economists had expected a mild increase to -15. The latest reading is the lowest since November.

The British pound fell to its lowest level against the euro in more than two months amid political jitters after the Green Party won a special election in England.

The euro was moving in a narrow range against the dollar following reports that the European Central Bank moved away from U.S. dollar holdings in early 2025.

While the U.K.'s FTSE 100 Index is up by 0.3 percent, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.6 percent.

Among individual stocks, French steel tubes maker Vallourec has advanced after its fourth quarter revenue came in above expectations.

Reinsurer Swiss Re has also moved sharply higher after reporting a 47 percent increase in 2025 net profit.

Meanwhile, London-listed recruiter Hays has plunged after reporting a sharp decline in first-half earnings.

GKN Aerospace owner Melrose has also plummeted after it forecast 2026 revenue below expectations.

Belgian telecom operator Proximus has also moved sharply lower. The company announced job cuts and slashed dividends after revenues fell 6.6 percent year-on-year in the fourth quarter.

German online takeaway food company Delivery Hero has also tumbled after reporting annual gross merchandise value (GMV) slightly below market expectations.

U.S. Economic News

The Labor Department released a report on Friday showing producer prices increased by more than expected in the month of January.

The report said the Labor Department's producer price index for final demand climbed by 0.5 percent in January after rising by a downwardly revised 0.4 percent in December.

Economists had expected producer prices to rise by 0.3 percent compared to the 0.5 percent increase originally reported for the previous month.

The Labor Department also said the annual rate of producer price growth edged down to 2.9 percent in January from 3.0 percent in December. Economists had expected yearly growth to slow to 2.8 percent.

At 9:45 am ET, MNI Indicators is due to release its report on Chicago business activity in the month of February. The Chicago business barometer is expected to dip to 52.5 in February after surging to 54.0 in January, but a reading above 50 would still indicate growth.

The Commerce Department is scheduled to release data on construction spending the months of November and December at 10 am ET. Construction spending is expected to rise by 0.3 percent in December.