- U.S. stock futures were lower late Thursday, with Nasdaq 100 futures down 0.08%, S&P 500 futures down 0.06%, and Dow futures down 0.08%.
- Megacaps fell broadly, software stocks extended losses, and concerns spread into logistics, real estate, and financials.
- Asian equities retreated, with the MSCI Asia Pacific Index snapping a six-session winning streak.
U.S. stock futures traded lower late Thursday as investors remained cautious after a sharp AI-led selloff and awaited the January consumer inflation report due Friday.
As of 8.00 p.m. ET, Nasdaq 100 futures were down 0.08%, while S&P 500 futures down by 0.06%. Dow futures were down 0.08%.
On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF Trust (SPY) was in ‘extremely bearish’ territory amid ‘high’ message volume, while sentiment toward the Invesco QQQ Trust (QQQ) was ‘extremely bearish’ amid ‘normal’ message volume, and sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) was in the ‘bearish’ zone amid ‘extremely high’ message volume.
US Market Drivers
During Thursday’s regular session, U.S. stocks fell sharply as concerns mounted over the potential negative impact of AI on profits and business models across multiple industries.
The Dow Jones Industrial Average shed 1.3%, the S&P 500 dropped 1.6%, while the Nasdaq Composite lost 2%.
Technology stocks led the decline, with all of the “Magnificent Seven” stocks ending the day lower. Cisco Systems (CSO) slid 12% after issuing disappointing guidance, while Apple (AAPL) fell 5%, marking its worst single-day decline since April 2025. Selling pressure also spread into software, logistics, real estate and parts of the financial sector, as investors reassessed which industries could be disrupted by advances in AI.
Software shares extended recent losses, with the iShares Expanded Tech-Software Sector ETF (IGV) falling nearly 3% and sitting roughly 31% below its recent high after entering a bear market last month.
Dan Ives, managing director at Wedbush Securities, said in an interview with Yahoo Finance that the software selloff “will go down as a generational opportunity to own some of the stalwarts,” adding that they are expected to remain a core part of AI use cases.
Meanwhile, The Kobeissi Letter on X pointed to a growing profitability divide inside the S&P 500. They said net income margins excluding financials have risen to a record 13%, while margins excluding the Magnificent Seven and technology have fallen to 9%, creating the largest gap on record between tech and non-tech sectors. They also noted that margins for companies outside tech and financials have declined by about two percentage points over the past four years.
Trending Stocks To Watch On NYSE, Nasdaq
Coinbase Global (COIN): Shares rose nearly 1% in after-hours trading despite reporting a fourth-quarter (Q4) revenue decline and a net loss.
DraftKings (DKNG): Shares plunged about 15% in extended trading after the company issued a fiscal 2026 revenue forecast below analyst expectations.
Rivian Automotive (RIVN): Shares surged roughly 14% after-hours after reporting a narrower-than-expected Q4 loss and stronger revenue.
Applied Materials (AMAT): Shares jumped around 13% in extended trading following better-than-expected Q4 earnings and an upbeat outlook.
Fastly (FSLY): Shares gained about 3% after-hours after posting Q4 results that beat analyst estimates and receiving an analyst upgrade from William Blair.
How Global Markets Are Performing Today
Asian equities retreated from recent highs, with the MSCI Asia Pacific Index falling for the first time in six sessions as Japanese stocks declined, while South Korean shares edged slightly higher.
Investors sought safety in bonds, pushing the 10-year U.S. Treasury yield down to about 4.10%. Gold steadied near $4,920 an ounce after the prior session’s sharp drop, while silver rebounded modestly after its steep decline. Economist Peter Schiff said on X that silver trading near $74 was a “good time to buy.”
Among the key catalysts for Friday is the release of the U.S. January consumer price index data, which investors are watching closely for further clues on the Federal Reserve’s interest rate path.
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