Category: Market Summary

U.S. equity futures edged lower on Friday as selling pressure in technology stocks lingered. E-commerce heavyweight Amazon (NASDAQ:AMZN) unveiled an aggressive increase in capital spending, while automaker Stellantis (NYSE:STLA) announced a major shift in strategy away from electric vehicles. Bitcoin (COIN:BTCUSD) extended its decline, and oil markets remained cautious ahead of expected talks between the United States and Iran.

Amazon flags major jump in capital investment

Amazon (NASDAQ:AMZN) was among the final big technology groups to report earnings after Thursday’s Wall Street close, and it echoed peers by signalling a substantial ramp-up in investment aimed at expanding its artificial intelligence capabilities.

Chief executive Andy Jassy said the company plans to commit $200 billion to AI-related investment in 2026, representing a more than 50% increase in capital expenditure this year. The scale of the spending plans unsettled investors, sending Amazon shares sharply lower in after-hours trading.

The announcement reinforced the view that Big Tech remains firmly committed to heavy AI investment. The four leading hyperscalers—Amazon, Microsoft, Google and Meta—are now expected to collectively spend more than $630 billion this year.

On the results side, Amazon reported fourth-quarter 2025 earnings of $1.95 per share on revenue of $213.39 billion, up 13.6% year on year, narrowly missing profit expectations. Amazon Web Services delivered revenue of $35.6 billion in the December quarter, with sales growth of 24%, its strongest pace in 13 quarters.

Although AWS accounts for only around 15% to 20% of total revenue, it generates more than 60% of Amazon’s operating profit.
“Amazon delivered a slightly mixed picture with strong overall revenue growth and a standout boost from the cloud unit’s much anticipated reacceleration picking up greater speed,” Emarketer principal analyst Sky Canaves said.

U.S. futures dip as Wall Street braces for a weak week

U.S. stock futures moved lower early Friday, extending recent losses as Amazon’s post-earnings slide added pressure to the broader tech sector. At 03:35 ET, S&P 500 futures were down 0.2%, Nasdaq 100 futures fell 0.4%, and Dow futures slipped 0.1%.

The main Wall Street indices closed sharply lower on Thursday. The Nasdaq Composite dropped 1.6%, the S&P 500 fell 1.2%, and the Dow Jones Industrial Average lost more than 500 points. The Nasdaq is heading for its worst weekly decline since early April, down about 4%, while the S&P 500 has fallen roughly 2%. The Dow is broadly flat for the week.

Further earnings are due later Friday, including reports from Under Armour (NYSE:UAA), Biogen (NASDAQ:BIIB), AutoNation (NYSE:AN) and Philip Morris (NYSE:PM). The closely watched U.S. jobs report, initially scheduled for Friday, has been postponed to next week following the resolution of the federal government shutdown.

Separately, figures from Challenger, Gray & Christmas showed that announced job cuts by U.S. employers jumped in January to their highest level for the month in 17 years.

Stellantis books large charge in “strategic shift”

Stellantis (NYSE:STLA) said it will take a charge of roughly €22 billion ($26.5 billion) related to a reassessment of its electric vehicle strategy, resulting in a preliminary loss of between €19 billion and €21 billion in the second half of 2025.

The automaker said most of the write-downs stem from revisions to its product roadmap, reflecting sharply lower assumptions for EV demand.
“The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” said Stellantis CEO Antonio Filosa in a statement.

The Franco-Italian group described the move as a “strategic shift” as it adapts to high costs and slower-than-expected EV sales. Stellantis, alongside other major European manufacturers such as Volkswagen, has also called for subsidies to support car production in the EU amid pressure from U.S. tariffs and increasing competition from China.

Bitcoin slides toward steep weekly losses

Bitcoin weakened further on Friday, putting the world’s largest cryptocurrency on track for a sharp weekly decline as appetite for risk continued to fade. Bitcoin dropped more than 9% to around $64,730, after earlier falling to a 16-month low near $60,100.

The digital currency was heading for a third consecutive weekly loss and was down more than 20% over the week. It has now lost over half its value from the record high reached in October and has erased all gains made since President Donald Trump’s election victory in late 2024.

Bitcoin has been dragged lower by a broader retreat from speculative assets, with selling pressure intensifying after Trump nominated Kevin Warsh as his preferred candidate to chair the Federal Reserve. Warsh has previously opposed the Fed’s asset-purchase programmes, and expectations of a leaner central bank balance sheet have weighed on crypto markets.

Adding to the negative tone, major corporate holder Strategy (NASDAQ:MSTR) reported a significantly wider fourth-quarter loss on Thursday, largely due to declines in the value of its Bitcoin holdings.

Oil rebounds, but weekly losses remain likely

Oil prices rose on Friday but were still heading for their first weekly decline in almost two months, as investors awaited the outcome of U.S.–Iran talks later in the day. Brent crude gained 1.3% to $68.38 a barrel, while U.S. West Texas Intermediate rose 1.4% to $64.19.

Despite the bounce, Brent was set to finish the week down 3.3% and WTI lower by around 1.8%, with U.S. and Iranian officials due to meet in Oman amid heightened tensions in the Middle East. Markets have been hoping that dialogue between Washington and Tehran could help ease tensions and reduce the risk of a broader conflict, prompting traders to strip some geopolitical risk premium out of oil prices this week.

However, uncertainty persists after reports of disagreement over the scope of the talks, with Iran rejecting U.S. calls to include its missile programme and saying discussions would be limited to nuclear issues. Iran is a major oil producer and sits alongside the Strait of Hormuz, one of the world’s most critical shipping routes for crude.

U.S. equity futures signalled a mixed opening for Wall Street as investors weighed major technology earnings, ongoing weakness in software stocks and upcoming monetary policy decisions in Europe. Alphabet (NASDAQ:GOOG) drew strong attention after indicating it may significantly increase spending to accelerate its artificial intelligence ambitions. Market focus is also turning toward results from Amazon (NASDAQ:AMZN), due after the closing bell. Meanwhile, precious metals prices declined as currency strength pressured commodities.

U.S. futures point to uncertain open

As of early trading, futures tied to the Dow Jones Industrial Average were modestly lower, while S&P 500 and Nasdaq 100 futures posted slight gains.

Major U.S. indices finished the previous session without a clear direction as investors searched for signs that recent losses in software stocks could stabilise. Companies linked to AI-related hardware also experienced selling pressure.

Technology shares, long viewed as key beneficiaries of the artificial intelligence boom, have recently faced concerns that the rapid evolution of AI could disrupt parts of the sector. A software sector index has recorded one of its weakest relative performances against the S&P 500 since the early 2000s.

Analysts have suggested the sector is becoming increasingly polarised, with some companies expected to emerge as major AI beneficiaries while others could struggle to adapt.

Alphabet ramps up AI investment strategy

Alphabet appears to be strengthening its position in the global artificial intelligence competition following strong quarterly results from its Google business.

Previously seen as trailing OpenAI, the developer behind ChatGPT, Alphabet is now showing early signs of generating measurable returns from its substantial AI spending. Unlike OpenAI, which continues to operate at a loss, Alphabet is demonstrating revenue growth linked to its AI initiatives.

“Overall, we’re seeing our AI investments and infrastructure drive revenue and growth across the board,” CEO Sundar Pichai said.

Alphabet’s Gemini AI platform recorded 750 million monthly active users during the December quarter, closing the gap with ChatGPT, which reported more than 800 million users in October.

Company executives signalled that capital expenditure could potentially double this year, reaching between $175 billion and $185 billion, as Alphabet accelerates expansion of advanced data centres and semiconductor infrastructure supporting AI development. Although some investors initially expressed concern over the scale of spending, strong performance in Google’s cloud segment and other divisions helped reassure markets.

Alphabet shares moved slightly lower in extended trading but recovered from earlier declines.

Amazon earnings expected to highlight AI progress

Attention is shifting to Amazon, which has also made artificial intelligence a central element of its long-term growth strategy.

Amazon Web Services remains a major contributor to revenue, but investors are closely watching the company’s progress in AI development. Some market participants have viewed Amazon as trailing certain competitors in AI innovation, which has affected sentiment around the stock. Despite its role as one of the technology giants that have supported years of equity market gains, Amazon’s share price has slipped slightly over the past year.

However, Amazon previously reported revenue gains linked to AI services and announced plans to rapidly expand its global data centre infrastructure.

For the critical holiday quarter, analysts expect AWS net sales to grow by approximately 21%, excluding currency effects. Total revenue is forecast to reach around $211.49 billion, with earnings per share estimated at $1.96.

Central bank policy decisions in focus

Outside corporate developments, investors are closely monitoring monetary policy decisions in Europe. The European Central Bank is widely expected to leave interest rates unchanged at 2%, marking a fifth consecutive meeting without adjustments. However, the recent drop in eurozone inflation may increase pressure on policymakers.

Latest data showed eurozone consumer inflation slowed to 1.7% year-on-year in January, falling below the ECB’s 2% target.

Economists at Deutsche Bank noted that while rates are expected to remain unchanged through 2026, risks continue to point toward “further easing given the expected undershoot of the inflation target.”

They also highlighted that recent euro strength against the U.S. dollar reinforces this risk, although the argument for additional rate cuts “has not been proven yet.”

The Bank of England is similarly expected to hold its benchmark rate at 3.75%, with analysts citing persistent inflation pressures despite signs of a moderating labour market.

Precious metals retreat as dollar strengthens

Gold prices declined after reversing earlier gains, while silver dropped sharply following a brief recovery earlier in the week.

Weakness across metals resumed as the U.S. dollar strengthened ahead of European central bank announcements, placing downward pressure on commodity prices.

Silver experienced the steepest declines among precious metals, with spot prices falling significantly during Asian trading. The drop followed heavy selling in Chinese futures markets, which spilled over into global spot markets and erased much of the recent rebound.

“Even as prices of precious metals are now less elevated following the correction, sensitivity to the [dollar], yield repricing, and uncertainty around Fed policy under new leadership remains high. While positioning has likely reset to some extent, confidence may not have fully restored, pointing to a potential period of choppier, two-way trading,” Christopher Wong, FX strategist at OCBC said.

U.S. equity futures are indicating a largely flat start to Wednesday’s session, suggesting that markets may struggle to find clear direction following the previous day’s technology-led selloff.

Futures held steady even after fresh data from payroll processor ADP showed that private-sector job growth in January came in well below expectations. ADP reported that private employment increased by just 22,000 jobs last month, following a downwardly revised gain of 37,000 in December. Economists had been forecasting an increase of around 45,000 jobs, compared with the 41,000 initially reported for the prior month.

Despite the muted reaction to the data, technology stocks could remain under pressure after a sector rotation weighed heavily on markets on Tuesday. Shares of Advanced Micro Devices (NASDAQ:AMD) are likely to be a drag, with the chipmaker tumbling 10.1% in premarket trading.

The sharp move in AMD follows the release of better-than-expected fourth-quarter results, offset by first-quarter guidance that fell short of some analysts’ expectations.

By contrast, Super Micro Computer (NASDAQ:SMCI) is providing a lift to sentiment within the sector. The stock is surging 9.5% ahead of the open after the company reported fiscal second-quarter results that beat estimates and raised its full-year revenue forecast.

Wall Street closed sharply lower on Tuesday, reversing much of the prior session’s gains. All three major indexes finished in the red, led by pronounced losses in technology shares. The Nasdaq dropped 336.92 points, or 1.4%, to 23,255.19. The S&P 500 declined 58.63 points, or 0.8%, to 6,917.81, while the Dow Jones Industrial Average fell 166.67 points, or 0.3%, to 49,240.99.

The pullback was driven largely by investors rotating out of technology, a trend underscored by the Nasdaq’s underperformance. Software stocks were among the hardest hit, dragging the Dow Jones U.S. Software Index down 3.5% to its lowest close in more than nine months.

This weakness came despite a notable rally in Palantir Technologies (PLTR), which jumped 6.9% after the AI-focused software company delivered stronger-than-expected fourth-quarter results and issued an upbeat outlook.

Semiconductor shares also faced broad selling pressure, with the Philadelphia Semiconductor Index sliding 2.1%. NXP Semiconductors (NASDAQ:NXPI) fell 4.5% even though the Dutch chipmaker topped expectations on both earnings and revenue.

Outside the technology space, several sectors benefited from the rotation. Retail giant Walmart (NYSE:WMT) climbed 2.9%, pushing its market capitalization above $1 trillion for the first time.

“It would be hard to find a better illustration of the market’s recent rotation away from tech than Walmart achieving a $1 trillion valuation for the first time,” said AJ Bell head of markets Dan Coatsworth. He added, “This bastion of Main Street joins a club which has previously only been populated by technology businesses and Warren Buffett’s Berkshire Hathaway vehicle.”

Gold-related stocks also advanced sharply, supported by a strong rebound in bullion prices. The NYSE Arca Gold Bugs Index jumped 4.4%.

Strength in steel, energy, and housing stocks also helped cushion broader market losses, preventing a deeper decline across U.S. equities.

U.S. equity futures edged higher, even as a sharp downturn in software stocks continued to weigh on market sentiment and investors braced for earnings from the biggest technology names. Attention is firmly on Google parent Alphabet (NASDAQ:GOOG), which is set to report quarterly results after the market opens, with its artificial intelligence spending plans expected to be a key focus. Elsewhere, reports said Federal Reserve Governor Stephen Miran has stepped down from his role as a White House economic adviser, while fresh data on U.S. services activity is due and gold prices have climbed back toward $5,100 an ounce.

Futures edge up despite tech sell-off

U.S. stock futures traded modestly higher early Wednesday as markets balanced renewed pressure on AI-linked software shares against anticipation of results from mega-cap technology companies.

By 02:53 ET, Dow futures were up 134 points, or 0.3%, S&P 500 futures had added 19 points, or 0.3%, and Nasdaq 100 futures were higher by 57 points, or 0.2%.

Wall Street closed sharply lower in the previous session, led by steep declines in AI heavyweights Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), both of which fell close to 3%. Sentiment toward software stocks has weakened in recent days, as investors grow increasingly concerned about rising competition from newly launched AI models.

Those worries intensified after artificial intelligence firm Anthropic unveiled a new legal-analysis tool, triggering heavy selling in publishing and data-related stocks such as Thomson Reuters (NYSE:TRI) and LegalZoom (NASDAQ:LZ). The sell-off quickly spread across the broader software sector, dragging down names including PayPal (NASDAQ:PYPL) and Expedia Group (NASDAQ:EXPE), each of which dropped more than 10%. According to the Wall Street Journal, two S&P indices tracking software, financial data and exchange companies collectively lost around $300 billion in market value.

“[T]he defining development was the collapse in technology stocks, as investors increasingly view AI as a net negative. Companies heavily exposed to aggressive infrastructure investment are no longer benefiting, while concerns about AI-driven disruption and displacement are eroding large portions of the market,” analysts at Vital Knowledge said in a note.

Not all shares were under pressure, however. Walmart (NYSE:WMT) stood out after a surge in its stock pushed the retailer’s market capitalization above $1 trillion for the first time, supported by continued market-share gains among price-conscious consumers.

Alphabet in the spotlight

With volatility rippling through the software sector, markets are now turning their attention to Alphabet’s earnings report later in the day. Investors are expected to closely scrutinize the group’s costly push into artificial intelligence, including multibillion-dollar investments in data centers and specialized chips.

Alphabet shares rallied around 29% in the final quarter of 2025, driven by positive reception of its latest Gemini AI model and a partnership with Apple to enhance the iPhone maker’s Siri voice assistant. Analysts cited by Reuters have suggested that Alphabet has now taken the lead in the race to develop and commercialize AI technologies, overtaking competitors such as Microsoft.

“Google sentiment is (justifiably) very bullish, as the company’s core advertising businesses continue to deliver strong results while it emerges as the best-positioned player across the AI ecosystem,” Vital Knowledge analysts said. They cautioned, however, that it remains unclear whether strong earnings will stabilize broader AI sentiment or instead amplify concerns about the resilience of the ecosystem surrounding rivals like OpenAI.

Further insight into the technology landscape may come on Thursday, when Amazon (NASDAQ:AMZN) is scheduled to report results. Outside the tech sector, pharmaceutical giant Eli Lilly (NYSE:LLY), which has made significant bets on weight-loss treatments, is also among the notable companies reporting ahead of the U.S. market open.

Reports: Miran exits White House adviser role

Media reports indicated that Federal Reserve Governor Stephen Miran has resigned from his position as a White House economic adviser, fulfilling a commitment he previously made to the U.S. Senate.

The move allows Miran—appointed last year by President Donald Trump to temporarily fill a vacancy on the Federal Reserve Board through January 31—to remain at the central bank until a successor is confirmed.

“I promised the Senate that if I remained on the Board beyond January, I would formally depart the Council,” Miran wrote in a resignation letter cited by several outlets, adding that it was “important to honor my word.”

Since joining the Fed, Miran has been a vocal proponent of aggressive interest-rate cuts, frequently diverging from the views of other policymakers. His stance has aligned with Trump’s calls for rapid rate reductions to stimulate the economy, drawing criticism from some Democratic senators who have urged his “immediate” resignation from the Fed board.

U.S. services data ahead

Last month, the Federal Reserve opted to keep interest rates unchanged in a range of 3.5% to 3.75%, despite dissent from Miran and Fed Governor Christopher Waller. While there are signs of softening in the labor market, inflation has remained above the Fed’s 2% target, reducing the urgency to resume the aggressive rate-cutting cycle seen in 2025.

With the monthly jobs report delayed earlier this week, investors will focus on other indicators, including January data on U.S. services activity. The Institute for Supply Management’s non-manufacturing purchasing managers’ index is expected to come in at 53.5, down from 54.4 previously. Readings above 50 signal expansion.

Gold climbs back toward $5,100

Gold prices moved higher on Wednesday, approaching $5,100 an ounce, as renewed tensions between the United States and Iran boosted demand for safe-haven assets.

The precious metal extended gains after rebounding sharply from earlier losses in the prior session.

Safe-haven demand was reinforced by reports that the U.S. shot down an Iranian drone that approached a U.S. aircraft carrier in the Arabian Sea. Separately, Iranian gunboats were seen near a U.S.-linked tanker in the Strait of Hormuz.

These developments cast doubt on earlier comments from Tehran and Washington suggesting talks would take place on Friday. News of the planned discussions had previously eased market anxiety and weighed on gold prices.