US stock futures dipped slightly after Amazon (AMZN) joined Google (GOOG) and other AI-focused tech giants in reporting disappointing projections for the upcoming year. Futures for major indexes showed marginal declines at the open, with Dow Jones Industrial Average futures (YM=F) hovering near flat, while S&P 500 (ES=F) and Nasdaq (NQ=F) futures edged down by 0.1%.
The ongoing earnings season has been heavily influenced by discussions surrounding AI, especially after DeepSeek’s industry-shaking launch. The escalating costs of AI development, highlighted by Meta (META) and Microsoft (MSFT), have made investors wary of continuing to fund these ventures without seeing substantial returns.
Amazon’s earnings report added to the concerns, as its disappointing outlook caused shares to fall around 4% following Thursday’s market close. This came after similar post-earnings drops from Google and AMD (AMD) earlier this week.
Despite setbacks for major players, AI has given some companies an edge in the market. Palantir (PLTR), with its military analytics business, saw a notable 10% surge in shares on Thursday, continuing its strong rally this week. Pinterest (PINS) also capitalized on AI, seeing a 19% rise in extended trading after boosting ad sales with the technology.
The week has been marked by uncertainty surrounding President Donald Trump’s unpredictable tariff actions, which have pushed some investors toward safer assets. Gold (GC=F) reached all-time highs before pulling back after Thursday’s close as investors sought stability amidst market volatility.
Trump has also set his sights on hedge funds, announcing plans to close a tax loophole that allows fund managers to pay capital gains taxes instead of income taxes on earnings from investment businesses.
As Friday morning approaches, attention shifts to the January jobs report, which is expected to provide a snapshot of the US economy and labor market. Economists anticipate a slowdown in hiring, though employment figures are expected to remain robust.
