U.S. equity futures moved lower on Friday as the recent technology-sector selloff extended into a fifth session, with fresh corporate developments in tech and autos adding to investor caution. Amazon's latest earnings release was accompanied by a pronounced acceleration in planned capital spending targeted at artificial-intelligence infrastructure, while Stellantis disclosed a major charge tied to a reappraisal of its electric-vehicle strategy. Elsewhere, Bitcoin tumbled again and crude oil traded higher ahead of scheduled talks between U.S. and Iranian officials.
Investors parsed corporate results and strategic announcements against a backdrop of broader market weakness, with the effects felt across multiple sectors including technology, automotive, commodities and crypto markets.
Amazon commits to a large AI-driven capex increase
Amazon reported quarterly results after the market close on Thursday and unveiled plans to significantly boost investment in artificial-intelligence infrastructure. CEO Andy Jassy said the company will channel $200 billion into beefing up its AI efforts in 2026, a move described by the company as a more-than-50% increase in capital expenditures this year. The announcement weighed on investor sentiment and Amazon shares moved sharply lower in after-hours trading.
Amazon's quarterly figures were mixed. The company posted earnings per share of $1.95 for the fourth quarter and revenue of $213.39 billion, an increase of 13.6% year-on-year. Those results missed profit expectations by one cent.
Amazon Web Services remained a notable bright spot in the quarter. AWS posted $35.6 billion in revenue for the December quarter, with fourth-quarter sales growth of 24% - the fastest in 13 quarters, according to the company's reporting. Although AWS accounts for just 15% to 20% of Amazon's overall sales, it produces more than 60% of the company’s operating profit.
Commenting on the report, Sky Canaves, a principal analyst at Emarketer, said that Amazon presented a somewhat mixed picture with "strong overall revenue growth and a standout boost from the cloud unit’s much anticipated reacceleration picking up greater speed."
The company's spending plans align with a broader trend among major cloud providers. The top four hyperscalers - Amazon, Microsoft, Google and Meta - are expected to collectively invest heavily in AI infrastructure this year.
Futures slide; major indices show steep declines
U.S. stock futures slipped on Friday, reflecting the ongoing weakness in technology shares that has pulled down sentiment across equity markets. At 03:35 ET (08:35 GMT), S&P 500 futures traded 11 points, or 0.2%, lower; Nasdaq 100 futures were down 95 points, or 0.4%; and Dow futures fell 30 points, or 0.1%.
The main Wall Street indices posted sharp losses on Thursday. The tech-heavy NASDAQ Composite declined 1.6%, the S&P 500 fell 1.2% and the blue-chip Dow Jones Industrial Average dropped by more than 500 points, or 1.2%.
For the week, the Nasdaq was on pace for its worst performance since early April, down around 4% so far, while the S&P 500 had slid roughly 2%. The Dow Jones Industrial Average was roughly flat for the week.
Corporate earnings continued to shape the trading day, with additional reports due on Friday from companies including Under Armour, Biogen, AutoNation and Philip Morris. Meanwhile, the government jobs report that had been scheduled for the session was pushed to next week after a federal government shutdown was resolved, moving a key macro data point out of the immediate calendar.
Labor market news added to the caution. A survey from outplacement firm Challenger, Gray & Christmas released on Thursday showed that layoffs announced by U.S. employers surged in January to the highest level for that month in 17 years.
Stellantis records a multibillion-euro charge and shifts approach to EVs
Stellantis announced that it would take a charge of roughly €22 billion, equivalent to about $26.5 billion, tied to a reassessment of its electric-vehicle development plans. The company said the revaluation would lead to a preliminary loss in the range of €19 billion to €21 billion for the second half of 2025.
Stellantis said most of the write-downs arose from changes to its product roadmap that reflect significantly lower assumptions for EV sales. The company described the decision as a "strategic shift" as it reorients its plans in response to high costs and muted EV demand.
In a prepared statement, Stellantis CEO Antonio Filosa said: "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."
The Franco-Italian automaker, which produces brands including the Jeep, said the move was designed to better align product strategy with customer preferences amid challenging conditions. Stellantis, along with Volkswagen, has urged for subsidies to sustain car manufacturing in the European Union as automakers contend with issues ranging from U.S. tariffs to competition from Chinese manufacturers.
Bitcoin posts steep declines amid risk-off mood
Bitcoin continued to fall on Friday, extending a recent selloff in the world's largest cryptocurrency. The digital token dropped more than 9% to $64,730 after an earlier slide to $60,100, a 16-month low.
Bitcoin was set for a third consecutive week of losses, down over 20% for the week. The decline has erased more than half of the value that Bitcoin had gained from its record high in October and wiped out all gains made since President Donald Trump’s election victory in late 2024, according to the reported trajectory in recent trading.
Market participants cited a broad withdrawal from speculative assets as a driver of the weakness. Selling pressure intensified after President Trump nominated Kevin Warsh as his choice for the next chair of the Federal Reserve. Warsh has opposed the Fed's asset-buying programs in the past, and market observers noted that a leaner Fed balance sheet would tighten monetary policy and could place additional pressure on speculative assets such as cryptocurrencies.
The crypto sector also faced company-level headwinds. MicroStrategy reported a materially wider fourth-quarter loss, which the company said was driven primarily by declines in the value of its Bitcoin holdings.
Oil inches higher but set for weekly decline as diplomatic talks loom
Oil prices climbed on Friday but were on course for their first weekly decline in almost two months as markets awaited the outcome of talks between U.S. and Iranian officials. Brent futures rose 1.3% to $68.38 a barrel while U.S. West Texas Intermediate crude advanced 1.4% to $64.19 a barrel.
Despite the intraday gains, Brent was poised to finish the week down 3.3% and WTI looked set for a weekly fall of 1.8%. The meetings between Tehran and Washington were scheduled to take place in Oman amid heightened military tensions in the Middle East.
Traders have priced some of the risk out of crude this week on hopes that talks could help deescalate tensions and avert a broader conflict. At the same time, reports indicated disagreement over the scope of the discussions, with Iran rejecting U.S. calls to address its missile arsenal and saying the talks would be restricted to Tehran's nuclear program. Iran's role as a significant oil producer and its proximity to the Strait of Hormuz - a key crude shipping chokepoint - add to the sensitivity of any escalation in the region.
The interplay of large corporate spending plans, strategic reassessments in the auto industry, volatility in digital assets and geopolitical risk around oil supplies has left markets digesting a range of cross-cutting influences. Traders and investors face several near-term data points and corporate releases that may add further direction to markets in the days ahead.