US stock futures edged lower on Friday, following disappointing projections from Amazon (AMZN), which joined other AI-focused tech giants like Google (GOOG) in offering weak guidance for the year ahead. Futures tied to the major stock indexes showed a modest decline, with Dow Jones Industrial Average futures (YM=F) hovering near the flatline, and both S&P 500 (ES=F) and Nasdaq (NQ=F) futures slipping by 0.1%.
Earnings Season Focuses on AI Challenges
This earnings season has been largely dominated by discussions surrounding artificial intelligence (AI), especially after the industry was shaken by DeepSeek’s recent developments. The high costs associated with AI development at major companies like Meta (META) and Microsoft (MSFT) have sparked investor caution, as they await tangible results from these investments.
Amazon’s earnings report added to this narrative, disappointing investors with a weaker-than-expected outlook. As a result, Amazon’s shares fell nearly 4% in after-hours trading on Thursday, continuing the trend of post-earnings losses seen in other tech giants like Google and AMD (AMD) earlier this week.
Some Companies See AI Success
While large tech firms struggled, AI has still provided opportunities for smaller companies to thrive. Palantir (PLTR), which focuses on military analytics, saw its stock jump 10% on Thursday, contributing to a strong rally this week. Similarly, Pinterest (PINS) used AI to boost its ad sales, leading to a 19% surge in its shares during extended trading.
Tariff News and Safe-Haven Assets
The past week has been marked by unpredictable news regarding tariffs, with President Donald Trump’s statements keeping traders on edge. As a result, some investors have shifted toward safer assets, pushing gold (GC=F) prices to new all-time highs before pulling back after Thursday’s close.
Additionally, President Trump has targeted hedge funds, announcing plans to close a loophole that currently allows fund managers to pay capital gains tax instead of income tax on earnings from investment businesses.
Jobs Report in Focus
As markets digest the earnings reports and tariff news, all attention will turn to the US jobs report set for release on Friday. Economists are expecting hiring to have slowed last month but still remain strong, providing a key signal of the health of the US labor market and the broader economy.
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