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U.S. equity futures pointed to an uneven start on Friday, as investors digested a mix of corporate earnings, executive news and lingering questions around the cost of artificial intelligence investment. Broadcom (NASDAQ:AVGO) shares retreated in late trading after the chipmaker warned that its expanding AI business would pressure margins. Costco (NASDAQ:COST) delivered better-than-expected quarterly results, underscoring resilient demand for value-focused retail as shoppers remain cautious ahead of the holiday season. Meanwhile, Lululemon Athletica (NASDAQ:LULU) said its chief executive will step down, amid reports that the company’s founder is considering a potential proxy challenge. Oil prices moved higher on supply concerns linked to possible U.S. action against Venezuelan crude shipments.

Futures point to a muted open

U.S. stock futures hovered near flat early Friday, suggesting a subdued end to a week shaped by central bank decisions and closely watched developments in the artificial intelligence sector.

At around 02:00 ET, Dow Jones futures were up 105 points, or 0.2%, S&P 500 futures were little changed, and Nasdaq 100 futures slipped 36 points, or 0.1%.

Wall Street closed at fresh record highs on Thursday, with both the S&P 500 and the Dow Jones Industrial Average lifted by a Federal Reserve decision that investors viewed as more balanced than expected. Market strategists at Vital Knowledge said Fed Chair Jerome Powell effectively gave a “green light” for a year-end rally in equities.

That optimism was partly offset by a downbeat outlook from Oracle, which intensified concerns over whether heavy spending on artificial intelligence will translate into durable profits. Oracle’s shares sank more than 10%, while its bonds were sold off and demand rose for credit default swaps, highlighting anxiety over debt-funded AI expansion.

The negative reaction weighed on the tech-heavy Nasdaq Composite, which fell 60.30 points, or 0.25%.

Broadcom flags margin pressure

Broadcom shares slid in extended trading after the semiconductor group cautioned that margins will decline as AI-related revenue dilutes profitability.

As the company seeks to challenge Nvidia’s dominance in AI processors, it has ramped up investment in the space. Chief executive Hock Tan told analysts that Broadcom’s order backlog has reached $73 billion, with deliveries expected over the next 18 months.

However, the scale of investment required is substantial. Chief financial officer Kirsten Spears said first-quarter consolidated gross margins are expected to fall by around 100 basis points from the previous quarter.

Industry-wide, major U.S. cloud providers are projected to spend more than $400 billion on AI this year, largely on data centre infrastructure needed to support models such as OpenAI’s ChatGPT and Google’s Gemini.

With little evidence so far that these investments are generating meaningful productivity or earnings gains — combined with elevated valuations and a wave of dealmaking — some investors are warning of bubble-like dynamics in the AI sector.

Broadcom’s fiscal fourth-quarter results, which beat expectations, marked one of the final major AI-related earnings reports of 2025. Attention now turns to upcoming results from Apple supplier Jabil and memory-chip maker Micron later this month.

Costco outperforms

Elsewhere, Costco shares dipped slightly in after-hours trading, despite the wholesale retailer reporting fiscal first-quarter revenue and profit that exceeded market estimates.

Comparable sales excluding fuel rose 6.4% in the quarter ended November 23, topping expectations for a 5.82% increase, according to LSEG data cited by Reuters.

Results were also supported by Costco’s same-day delivery partnerships with Instacart in the U.S. and UberEats and DoorDash internationally.

The performance mirrors strength seen at rivals such as Walmart, Dollar Tree and Dollar General, reinforcing the view that many consumers — particularly in the U.S. — are increasingly seeking value amid economic uncertainty, a cooling labour market and stubbornly high inflation.

Lululemon CEO to step aside

Lululemon Athletica shares surged more than 10% in late trading after the company announced that CEO Calvin McDonald will leave his role and raised its full-year profit outlook.

McDonald is set to depart in January after seven years at the helm, with no immediate successor named. He will remain in a senior advisory role through March but will step down from the board.

The Wall Street Journal reported that McDonald’s exit comes as founder Chip Wilson has been privately exploring a possible proxy fight, holding talks with investors and advisers. Wilson is said to be dissatisfied with elements of Lululemon’s marketing strategy, though it remains unclear whether the leadership change will alter his plans.

Oil prices edge higher

Crude prices advanced on Friday, supported by supply concerns after reports suggested the U.S. could intercept additional Venezuelan oil shipments.

Brent crude futures rose 0.5% to $61.56 a barrel, while U.S. West Texas Intermediate gained 0.5% to $57.90 a barrel.

Despite the gains, both benchmarks were on track for weekly declines after sliding around 1.5% on Thursday, amid speculation that a potential peace agreement between Russia and Ukraine could boost Russian oil exports to global markets.

European equities moved higher on Friday, supported by positive momentum from global markets, even as disappointing economic data from the UK weighed on sentiment.

At around 08:05 GMT, Germany’s DAX was up 0.5%, France’s CAC 40 gained 0.2%, and London’s FTSE 100 rose 0.4%.

Fed decision lifts risk appetite

Market sentiment improved earlier in the week after the US Federal Reserve cut interest rates by 25 basis points and signalled the possibility of an additional reduction next year. Fed Chair Jerome Powell adopted a noticeably less hawkish tone than investors had anticipated during his post-meeting press conference.

US equities responded positively, with both the S&P 500 and the Dow Jones Industrial Average closing at record levels on Thursday. The NASDAQ Composite underperformed, however, as technology stocks came under pressure.

The strength in US markets helped European stocks follow Asian equities higher on Friday, as investors also looked ahead to upcoming policy decisions from the European Central Bank and the Bank of England next week.

UK growth data disappoints

Data released earlier in the session showed that the UK economy remained in contraction in October, with gross domestic product declining by 0.1% month on month. The reading matched September’s fall and undershot expectations for a 0.1% expansion.

Market participants pointed to lingering uncertainty surrounding the Autumn Budget presented by UK finance minister Rachel Reeves in November, which may have discouraged investment and spending decisions by businesses and households.

The Bank of England is scheduled to hold its final monetary policy meeting of the year next week and is widely expected to cut interest rates by 25 basis points to 3.75%, as recent figures indicate inflationary pressures are easing.

In Germany, inflation rose to 2.6% in November, according to data released by the federal statistics office, confirming preliminary estimates. Harmonised consumer prices, used for comparison across the European Union, stood at 2.3% year on year in October.

By contrast, the European Central Bank is expected to leave interest rates unchanged at its next meeting, with eurozone inflation broadly aligned with the bank’s medium-term target of 2%.

Corporate developments

In company news, Capita PLC (LSE:CPI) said in a recent trading update that revenue in some business units came in below expectations, although the outsourcing group maintained its full-year profit guidance.

Broadcom (NASDAQ:AVGO) was also in focus after forecasting first-quarter revenue above market estimates. However, the US chipmaker cautioned that margins are likely to decline due to a higher proportion of artificial intelligence-related revenue. The company’s expansion into AI chips has raised investor concerns about profitability and the cost of large-scale capital investment.

Oil prices edge higher

Oil prices rose modestly on Friday, supported by concerns over tighter supply after reports that the US may intercept additional Venezuelan oil shipments.

Brent crude futures increased by 0.5% to $61.56 a barrel, while US West Texas Intermediate crude gained 0.5% to $57.90 a barrel. Despite the day’s gains, both benchmarks remained on track for weekly declines after falling around 1.5% on Thursday, amid speculation that a potential peace agreement between Russia and Ukraine could lead to increased Russian oil supply on global markets.

UK equities moved modestly higher on Friday, following gains across European markets, even as sterling softened and fresh data showed the British economy unexpectedly remained in contraction in October.

By 08:25 GMT, the FTSE 100 was up 0.4%, while the pound slipped 0.07% against the dollar, trading just above the 1.33 level. Elsewhere in Europe, Germany’s DAX advanced 0.7% and France’s CAC 40 gained 0.6%.

UK economic update

Figures published by the Office for National Statistics showed the UK economy shrank by 0.1% month-on-month in October, defying expectations for a return to growth. The contraction matched September’s decline and fell short of economists’ forecasts for a 0.1% expansion.

On an annual basis, GDP grew by 1.1%, unchanged from the previous month but below the 1.4% consensus estimate. Analysts pointed to uncertainty surrounding the upcoming Autumn Budget, to be delivered by Chancellor Rachel Reeves, as a potential drag on economic activity.

Corporate news

Rio Tinto Ltd (LSE:RIO) said it has entered into an interim modernised agreement with the Yinhawangka Aboriginal Group covering its mining activities on Yingawangka land. The interim arrangement builds on an agreement first signed in 2013, with a comprehensive deal expected to be completed in 2026.

Capita PLC (LSE:CPI) issued a trading update for the 11 months to 30 November, reporting that revenue in certain divisions came in below expectations. Despite this, the outsourcing group reiterated that its full-year profit guidance remains unchanged and confirmed it has reached a transition agreement for its remaining closed-book Life & Pensions contracts.

Card Factory PLC (LSE:CARD) cut its full-year profit outlook, citing continued pressure on UK consumers that has weighed on high street footfall during a key trading period. The retailer now expects adjusted profit before tax for the year to fall between £55 million and £60 million, lower than previous guidance. The company pointed to “well publicised” challenges facing consumers, which it said have affected confidence and spending behaviour.

Meanwhile, WH Smith PLC (LSE:SMWH) said it has delayed the release of its preliminary results for the financial year ended 31 August 2025. The travel retailer now plans to publish the figures on 19 December 2025, later than initially indicated in its 29 October statement.

WH Smith PLC (LSE:SMWH) said on Friday that it has moved the publication date of its preliminary results for the financial year ended 31 August 2025.

The global travel retailer now expects to announce the results on 19 December 2025, later than the schedule outlined in its statement on 29 October.

The company said the revised timing will allow both WH Smith and its auditors, PricewaterhouseCoopers LLP, additional time to complete outstanding audit work.

GSK plc (LSE:GSK) said on Friday that the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) has issued a favourable opinion recommending that the use of its RSV vaccine, Arexvy, be extended to include all adults aged 18 years and above.

A final regulatory decision from the European Commission is anticipated in February 2026. Should approval be granted, Arexvy would become available for the prevention of RSV disease in the entire adult population aged 18 and over.

Arexvy was previously authorised in Europe as the first RSV vaccine for the prevention of lower respiratory tract disease caused by respiratory syncytial virus in adults aged 60 and older, as well as in individuals aged 50 to 59 who are considered at higher risk of severe RSV illness.

“Today’s positive CHMP opinion is an important step towards bringing more options to prevent severe RSV disease for adults in Europe,” said Sanjay Gurunathan, GSK Head of Vaccines and Infectious Diseases Research and Development.

Respiratory syncytial virus is a widespread and highly contagious virus that affects the lungs and airways, with an estimated 64 million infections worldwide each year. Within the European Union, RSV leads to an average of around 158,000 hospital admissions annually among adults aged 18 and above.

Adults admitted to hospital with RSV are more likely than children to experience serious complications, incur higher treatment costs, and face increased mortality rates. The actual scale of adult RSV infections may be higher than reported, as routine testing is not consistently performed.

Globally, the vaccine has already received approval in more than 65 countries for use in people aged 60 and over. It is also authorised in over 55 countries, including the United States, Japan and European markets, for individuals aged 50 to 59 who have certain underlying health conditions that increase their risk.

GSK said it continues to pursue broader regulatory approvals for Arexvy in additional markets, including the US and Japan.

Filtronic plc (LSE:FTC) said it has made strong strategic progress in the first half of FY2026, highlighted by the award of its largest-ever contract with SpaceX for its E-band gallium nitride (GaN) technology. The agreement represents a major commercial deployment of Filtronic’s products within the space sector.

The company also reported new contract wins across the aerospace and defence markets, expanding both its customer base and order pipeline. Filtronic said its innovation programme continues to advance, with additional product launches planned for 2026 and funding secured to support development of a Ka-band power amplifier. Management added that the group remains financially well positioned, supported by a strong order book and confidence in meeting full-year market expectations.

More about Filtronic plc

Filtronic is a global specialist in advanced microelectronics, designing and manufacturing high-performance communication solutions for mission-critical applications. With more than 45 years of industry experience, the company operates two manufacturing facilities and three engineering centres worldwide, serving customers across space, aerospace, defence, telecoms infrastructure and critical communications markets.

Capita plc (LSE:CPI) said trading over the 11 months to November 2025 delivered mixed results across its business lines. The Public Service division recorded revenue growth of 4%, while the Contact Centre business saw an 18.3% decline, reflecting contract losses and lower volumes, particularly within the telecommunications sector.

Pension Solutions posted modest growth during the period, while Regulated Services revenue fell by 14.3% as the company continues with its planned exit from that sector. Capita said it has made further progress on its transformation strategy, delivering £250 million of annualised cost savings and expanding its use of artificial intelligence. Recent initiatives include the launch of the AI Catalyst Stack and AI Lab. The group added that its contract pipeline has increased to £16.5 billion, underlining longer-term growth opportunities.

More about Capita plc

Capita plc is a business services provider supporting clients across the public and private sectors in managing complex operational processes. The group operates in eight countries and employs around 34,000 people, delivering people-led services supported by technology, primarily across the UK and Europe.

ITM Power plc (LSE:ITM) said it has secured two new engineering contracts covering projects in Australia and Canada, with a combined planned capacity of 70MW. The awards include a Basic Design Engineering Package for an Australian project and a Front-End Engineering Design contract in Canada.

Both projects are expected to utilise ITM Power’s NEPTUNE V containerised green hydrogen production plants. The company said the contracts mark an important step in expanding its presence in the Australian and Canadian markets, while reinforcing its position within the global green hydrogen sector.

More about ITM Power plc

ITM Power plc is a UK-based designer and manufacturer of electrolysers using proton exchange membrane (PEM) technology to produce green hydrogen from renewable electricity and water. Founded in 2000 and headquartered in Sheffield, the company develops solutions aimed at supporting the transition to net zero energy systems.

Ariana Resources PLC (LSE:AAU) said it has continued to make progress with its exploration drilling programme at the Dokwe gold project in Zimbabwe, with 2,411 metres completed from the planned 4,000-metre campaign. The company said drilling at Dokwe Central has identified encouraging geological features, including silicification, pyritisation and zones of shearing.

Ariana noted that the use of real-time data from portable XRF analysis and magnetic susceptibility measurements is helping to refine geological interpretation and guide adjustments to the drilling programme. The group said it is considering extending the current campaign, with laboratory assay results expected before the end of the year to provide further insight into the project’s mineralisation and resource potential.

More about Ariana Resources PLC

Ariana Resources PLC is a gold-focused exploration, development and production company with assets in Africa and Europe. The group is working to advance and expand its gold portfolio, including the Dokwe gold project in Zimbabwe.