U.S. stock futures moved down on Friday as market participants worked through a stream of high-profile technology results and a string of corporate moves that together shaped sentiment around the artificial intelligence trade.
By 02:59 ET (07:59 GMT), futures on the Dow were down 205 points, or about 0.4%. The S&P 500 futures had slipped roughly 13 points, or 0.2%, while Nasdaq 100 futures were broadly unchanged. The near-term trading picture followed a mixed session on Wall Street the prior day, when investors parsed earnings from AI-focused semiconductor leader Nvidia and cloud software company Salesforce.
Nvidia reported quarterly results that beat expectations, but market commentary emphasized several lingering concerns. These included intensifying competition, questions about the sustainability of surging customer demand, and uncertainty about the timing of meaningful returns for investors. The stock, which represents a sizeable portion of the broader market, fell by more than 5% after those worries were factored in by traders.
At the same time, Salesforce shares rose even as the company issued an annual revenue forecast that some considered underwhelming. Analysts at Vital Knowledge described Salesforce's numbers as "no worse than feared," and noted a marked shift inside the technology complex. Their commentary highlighted a "violent rotation" during the session as capital flowed away from more "physical" tech such as chips and data-center infrastructure and into "virtual" technologies like software and data-centric businesses.
Vital Knowledge's analysts connected that rotation to a combination of "small red flags" from Nvidia, relief over results at Salesforce and peer Workday, and comments from AI startup Anthropic earlier in the week about wanting to "compliment and augment, not kill" software companies. Those elements together helped to push investor activity toward software and data plays and away from some hardware-exposed names.
Paramount Skydance emerges as likely victor in Warner bidding
In media-industry developments, Paramount Skydance appears positioned to win the long-running auction for Warner Bros. Discovery after Netflix stepped away from its offer. The HBO Max parent company said its board determined Paramount's $31-per-share bid for all of the company was superior to Netflix's proposal. Following that determination, Netflix was given four days to respond but opted to withdraw the $27.75-per-share offer it had put forward for Warner Bros.' studios and the HBO Max streaming platform.
Executives at Netflix, whose shares jumped in after-hours trading once the decision was announced, characterized the potential acquisition as "always a 'nice to have' at the right price" but "not a 'must have' at any price." The company has the balance-sheet capacity to pursue such a purchase, yet faced shareholder skepticism about the strategic rationale for acquiring a legacy media operator.
Paramount, controlled by David Ellison, the son of tech entrepreneur Larry Ellison, would, if the transaction completes and clears regulators, bring well-known franchises under its umbrella. The package would include major properties such as "Harry Potter" and "Game of Thrones," and would add cable networks including CNN and TBS to Paramount's holdings. Warner Bros. CEO David Zaslav said that a transaction with Paramount would "create tremendous value for our shareholders." After the announcement, Paramount shares rose in extended trading while Warner Bros. Discovery shares dipped.
Anthropic and Pentagon at odds over AI safeguards
Anthropic, one of the more prominent AI startups, has publicly rejected a Pentagon demand to remove safety features from its systems. The U.S. Defense Department requested that Anthropic strip guardrails that prevent the technology from being used in ways such as conducting surveillance of Americans or powering weapons that operate autonomously.
The Pentagon has warned it could terminate its partnership with Anthropic and label the company a "supply chain risk" if it does not comply. Defense Secretary Pete Hegseth provided Anthropic with a Friday afternoon deadline to accept that the military could employ the technology in all lawful cases. Anthropic's chief executive, Dario Amodei, said he could not comply "in good conscience," arguing that acquiescing to the request would effectively undo the safety measures the company has put in place.
Block moves to reduce workforce by roughly half, stock surges
Jack Dorsey-led Block announced plans to cut about half of its workforce, a move the company says is intended to accelerate integration of AI across its businesses. The reductions are expected to result in the loss of more than 4,000 jobs. Following the announcement, Block's shares jumped more than 23%.
Block's chief executive, Jack Dorsey, commented that "intelligence tools have changed what it means to build and run a company," adding that "we're already seeing it internally" and that "a significantly smaller team using the tools can do more and do it better." The company anticipates as much as $500 million in restructuring charges tied to the layoffs.
Market analysts cited by Reuters suggested the sharp rise in Block's share price reflected investor hopes that margins may improve as headcount declines, though the company will incur substantial short-term restructuring costs.
Oil edges higher as U.S.-Iran talks continue
Oil prices inched up on Friday after the United States and Iran extended dialogues over Tehran's nuclear program, a development that eased some fears about potential military escalation that could interrupt supply. Brent futures were up 0.7% at $71.29 a barrel, while U.S. West Texas Intermediate crude rose 0.8% to $65.74 a barrel.
On the week, Brent was roughly unchanged while WTI was on track for a decline of about 1%, reversing some prior gains. The talks that concluded on Thursday produced no definitive agreement, but officials said negotiations would continue with technical-level discussions scheduled for next week in Vienna, according to a post on X by Omani Foreign Minister Sayyid Badr Albusaidi.
Earlier in the month, heightened tensions over Iran had been a key influence on oil markets as the United States assembled a substantial military presence in the Middle East and warned of possible action should Tehran reject a deal. Friday's extension of talks appeared to take some immediate pressure off supply-concern premiums embedded in prices.
Market takeaway
The session distilled several intersecting themes: investor caution around the AI-driven winners and losers inside technology; a major shift in the media M&A landscape with Paramount Skydance now in position to acquire Warner Bros. Discovery; an emerging standoff between an AI startup and a key government customer over safety constraints; and corporate cost restructuring tied explicitly to the adoption of AI tools, as seen at Block. Energy markets reacted to diplomatic developments between the United States and Iran, nudging oil prices higher on the day.
Each of these stories carried distinct cross-market implications for equities, media and entertainment assets, defense and AI-related companies, payments and fintech firms, and energy markets, and contributed to the mixed tone seen in futures trading early Friday.