U.S. equity futures edged lower on Friday as investors assessed fresh technology earnings and reconsidered positioning around artificial intelligence-driven stocks. Paramount Skydance (NASDAQ:PSKY) is emerging as the frontrunner to acquire Warner Bros. Discovery (NASDAQ:WBD) after Netflix (NASDAQ:NFLX) withdrew from the bidding process, while AI company Anthropic entered a standoff with the Pentagon. Meanwhile, Jack Dorsey’s Block (NYSE:XYZ) surged following a major restructuring announcement, and oil prices moved modestly higher.
Futures slip ahead of market open
Futures tied to major U.S. indices pointed to a softer end to the trading week as markets digested a wave of influential tech-sector results.
At 02:59 ET, Dow futures were down 205 points, or 0.4%, S&P 500 futures fell 13 points, or 0.2%, and Nasdaq 100 futures were largely unchanged.
Wall Street finished Thursday’s session mixed, with investor focus centred on earnings from artificial intelligence leader Nvidia (NASDAQ:NVDA) and enterprise software group Salesforce (NYSE:CRM).
Although Nvidia reported quarterly results that exceeded expectations, investors remained cautious amid rising competitive pressures, concerns about the durability of strong demand, and uncertainty over the timing of meaningful shareholder returns. Nvidia shares — which carry significant weight in major indices — declined by more than 5%.
Salesforce shares advanced despite issuing a weaker-than-expected revenue outlook for the year ahead. Analysts at Vital Knowledge said the results were “no worse than feared.”
Trading also reflected what analysts described as a “violent rotation” within technology stocks, as investors shifted capital away from hardware-focused companies such as chipmakers and data center infrastructure providers toward software and data-oriented businesses.
Analysts argued that “small red flags” from Nvidia, combined with relief surrounding results from Salesforce and Workday, along with comments from AI startup Anthropic stating it aims to “compliment and augment, not kill” software companies, helped drive the shift.
Paramount moves ahead in Warner takeover contest
Paramount Skydance appears set to win the extended takeover battle for Warner Bros. Discovery after Netflix unexpectedly stepped away from negotiations.
Netflix executives — whose shares rose in after-hours trading — said the acquisition was “always a ’nice to have’ at the right price,” but “not a ’must have’ at any price.” While the streaming company has ample financial capacity, some investors had questioned the strategic rationale behind acquiring a traditional media group.
Warner Bros.’ board concluded that Paramount’s $31-per-share offer represented a superior proposal. Netflix was granted four days to respond but ultimately chose not to match the bid, abandoning its $27.75-per-share offer covering Warner Bros.’ studios and HBO Max.
The move positions Paramount — controlled by David Ellison, son of technology billionaire Larry Ellison — to form a larger entertainment powerhouse incorporating major franchises such as “Harry Potter” and “Game of Thrones.” Pending regulatory approval, Paramount would also gain oversight of cable channels including CNN and TBS.
Warner Bros. CEO David Zaslav said a Paramount transaction would “create tremendous value for our shareholders.” Paramount shares rose in extended trading, while Warner Bros. stock declined.
Anthropic clashes with Pentagon over AI safeguards
Artificial intelligence firm Anthropic said it would refuse Pentagon demands to remove safety protections embedded in its AI systems, creating friction between the startup and the U.S. government.
The dispute centres on a Pentagon request to eliminate safeguards designed to prevent the technology from being used for domestic surveillance or autonomous weapons systems.
The Defense Department has warned it may terminate its partnership with Anthropic and designate the company a “supply chain risk” if it does not comply. Defense Secretary Pete Hegseth reportedly set a Friday deadline for the company to approve unrestricted lawful use of the technology.
Anthropic CEO Dario Amodei said he could not agree “in good conscience,” arguing that the military’s request would effectively dismantle critical safety guardrails.
Block shares jump after workforce overhaul
Shares of Block surged more than 23% in after-hours trading after the payments company announced plans to cut nearly half of its workforce as part of a broader push to integrate artificial intelligence into its operations.
The reductions — expected to eliminate over 4,000 roles — come as companies increasingly reshape staffing strategies around AI adoption, raising concerns among workers and economists about employment impacts despite productivity gains.
Block CEO Jack Dorsey said that “[i]ntelligence tools have changed what it means to build and run a company,” adding “[w]e’re already seeing it internally” and “[a] significantly smaller team using the tools can do more and do it better[.]”
Although Block expects restructuring costs of up to $500 million, analysts cited by Reuters suggested the sharp rally reflects investor expectations that a leaner organization could deliver stronger margins.
Oil edges higher amid ongoing U.S.–Iran talks
Oil prices moved modestly higher but remained on track for weekly declines after the United States and Iran agreed to continue negotiations over Tehran’s nuclear program, easing fears of potential supply disruptions.
Brent crude futures rose 0.7% to $71.29 per barrel, while U.S. West Texas Intermediate futures climbed 0.8% to $65.74 per barrel.
For the week, Brent was broadly unchanged, while WTI was poised to fall roughly 1%, reversing part of the previous week’s gains.
Talks between Washington and Tehran concluded Thursday without a definitive agreement, but technical discussions are scheduled to resume next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said in a post on X following meetings in Geneva.
Tensions related to Iran have been a key driver of oil price movements throughout February, as the United States increased its military presence in the Middle East and warned of potential action if negotiations failed.
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