Summary: U.S. equity futures slipped modestly on Thursday night after a steep drop in technology stocks unsettled markets. The rout was amplified by disappointing results from a large networking firm and renewed concerns that artificial intelligence tools could erode demand in logistics and transportation. Investors are now focused on the January consumer price index figure for clues on inflation and the timing of interest-rate moves.
Futures dip after broad tech weakness
On Thursday evening, U.S. stock index futures were trading lower following steep losses across Wall Street’s technology complex. Market participants cited renewed worries about disruptive effects from artificial intelligence alongside disappointing corporate results as reasons for the pullback. Broader doubt about the timing of U.S. rate cuts - heightened by a stronger-than-expected nonfarm payrolls report earlier in the week - also kept buyers on the sidelines and prompted some profit-taking after recent gains.
According to prices observed later in the session, S&P 500 Futures fell 0.1% to 6,845.75 points, while Nasdaq 100 Futures also retreated 0.1% to 24,741.0 points by 19:57 ET (00:57 GMT). Dow Jones Futures were mildly lower at 49,5060.0 points.
Tech rout led by networking weakness; logistics hit by AI optimism
Major U.S. stock indexes suffered notable declines on Thursday. The S&P 500 dropped 1.6% to 6,832.75 points, the NASDAQ Composite fell 2% to 22,597.15 points, and the Dow Jones Industrial Average declined 1.3% to 49,451.88 points. Technology stocks were the primary source of downward pressure.
Investor sentiment soured after Cisco Systems Inc reported weaker-than-expected earnings, sending the networking equipment provider down 12% on the print. Losses in Cisco spilled over into the broader tech group, with Wall Street’s so-called Magnificent Seven names slipping in a range between 0.6% and 3%.
At the same time, traders reacted to a report about a new tool from AI firm Algorhythm Holdings Inc that could significantly cut inefficiencies in freight and logistics operations. The news sparked steep declines across trucking and logistics stocks amid concerns that improved automation could curb demand in those sectors, while Algorhythm’s shares jumped nearly 30%.
CPI data and interest-rate uncertainty take center stage
Market attention shifted toward the U.S. consumer price index for January, due Friday morning, which investors hope will provide firmer direction on inflation trends. Consensus expectations are for both headline and core CPI to cool slightly from the prior month.
However, traders remain on edge since CPI releases in January have come in above market expectations for the past four years, and any sign of unexpectedly elevated inflation could reinforce doubts about near-term rate cuts. The recent strong nonfarm payrolls reading added to uncertainty by underscoring a still-tight labor market - a dynamic that reduces the Federal Reserve’s incentive to lower policy rates.
Reflecting that environment, market-implied probabilities suggest a high chance that policymakers will refrain from cutting rates in March and April, according to CME FedWatch estimates cited by market participants.
Implications
The combination of tech sector weakness, earnings disappointment in networking equipment, and fresh AI-driven disruption risk for logistics has created cross-sector volatility. Equity futures’ modest decline signals continued caution among investors heading into a key inflation data release that could meaningfully influence monetary policy expectations.
Note: This report focuses on market moves, corporate earnings reaction, AI-related disruption concerns, and the upcoming CPI release as outlined above.