CPI inflation cools more than expected after Dow, S&P 500, Nasdaq futures wobble

U.S. stock futures were mixed on Friday as the broader market sold off as Wall Street digested a stronger-than-expected inflation reading for the path forward in interest rates.

Contracts on the S&P 500 (ES=F) and the Dow Jones Industrial Average futures (YM=F) are both near flatlines. Nasdaq 100 futures (NQ=F) fell 0.1% after sharp selling pressure in tech.

Inflation cooled more than expected in January, data released Friday by the Bureau of Labor Statistics showed. The Consumer Price Index showed that consumer prices rose 0.2% in January from a month earlier and 2.4% on an annual basis.

The report is likely to shape expectations for an already complicated Federal Reserve policy. Traders revived some bets on a June cut, with the majority expecting a quarter-point cut that month. Most bets remain on two cuts until the end of 2026, although a large percentage of traders are now betting on more cuts.

Meanwhile, caution followed a day of heavy selling as fears of AI disruption spread across sectors such as real estate, logistics and transportation — “old economy” names previously seen as safe alternatives to AI-linked stocks. After all seven megacaps of the “Magnificent Seven” finished low, the techs pounced.

It could be set to resume as investors scrutinize the latest earnings for another “shoot first, ask questions later” AI scare. Applied Materials ( AMAT ) stock rose more than 10% as the chip toolmaker’s upbeat outlook reflected strong AI demand. But Pinterest ( PINS ) shares fell nearly 20% as revenue fell and analysts worried about AI risks to its search platform.

On the earnings front, Rivian ( RIVN ) shares jumped nearly 20% after missing fourth-quarter earnings late Thursday. The EV maker said its R2 midsize model is on track for delivery before summer. Before the bell, eyes are on Moderna’s ( MRNA ) report, after a 10% drop in share price this week after the FDA rejected a new flu vaccine.

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US inflation cools more than expected in January

Consumer prices rose 0.2% in January from a month earlier, according to data released by the Bureau of Labor Statistics on Friday morning, a cooler rise than economists had expected. The inflation measure rose 2.4% on the year.

The so-called “core” consumer price index, which includes the mostly volatile food and energy categories, rose 0.3% from the previous month and 2.5% from a year earlier.

The headline inflation was below economists’ expectations of a gain of 0.3% on a monthly basis and 2.5% on an annual basis. January’s core CPI readings were in line with expectations month-over-month and year-over-year.

Readings on inflation changed traders’ outlook for a rate cut from the Federal Reserve, now pricing in a 51% chance of at least a 25 basis-point cut at the Fed’s June meeting. However, traders are widely confident that the Fed will keep rates steady at the upcoming March meeting, pricing in less than a 10% rate cut at that meeting.
Premarket Trending Tickers: DraftKings, Roku, and Maplebear

DraftKings (DKNG) The US gambling company’s stock fell 17% before the bell on Friday after it missed analyst expectations for this year’s guidance as it ramps up its investment in prediction markets.

year (of the year) stock rose 15% in premarket hours after the streaming company beat analysts’ estimates for fourth-quarter earnings. Roku also issued firm guidance for the year.

maplebeer (Cart)Also known as Instacart, its stock soared 12% before the bell today after analysts beat estimates for revenue, which rose 12% to $992 million. However, the group’s fourth-quarter earnings were dented by a $60 million settlement with the Federal Trade Commission amid claims it used underhand tactics to raise costs for shoppers.
Wall Street’s AI angst is turning into a boon for Asia stocks

From Bloomberg:

Wall Street’s fears of business disruption caused by artificial intelligence are turning into a boon for Asian stocks, boosting demand for the region’s major chipmakers, which dominate the industry’s supply chain.

The MSCI Asia Pacific index rose more than 12% in 2026, reversing losses in the U.S. benchmark as shares sold off on fears that AI models could threaten the businesses of software, legal and real estate services providers. The S&P 500 (^GSPC) is down 0.2% for the year, while the technology-heavy Nasdaq 100 (^NDX) gauge is down about 2%.

The divergence underscores a shift in global funding priorities away from AI pioneers with heavy spending burdens toward hardware manufacturers with strong pricing power, many of which are in Asia. Rising memory chip prices have been a boon for sector heavyweights such as Samsung Electronics Co ( 005930.KS , SSNLF ), while the irreplaceable role of Taiwan Semiconductor Manufacturing Co ( TSM , 2330.TW ) has provided support to the world’s leading stock chipman.

“The main concern of the US is spending hyperscalar money,” said Richard Tang, head of research in Hong Kong at Julius Baer. “Most of Asia’s tech exposure is upstream. Whoever wins in the end, upstream will still collect revenue from downstream players.”

Read more here.
Rivian stock rises on Q4 results; Upcoming R2 EV on track for Q2 customer delivery

Rivian ( RIVN ) stock rose 19% in premarket hours Friday after releasing better-than-expected fourth-quarter results on Thursday.

Pras Subramanian of Yahoo Finance reports:

Read the full story here.
After the results are lost on the top and bottom lines, Applied Materials stocks rise

Applied Materials ( AMAT ) stock climbed 11% in premarket hours Friday after the semiconductor equipment maker beat Wall Street expectations on both the top and bottom lines.

An after-hours reaction to Applied Materials’ results added to a strong run for the stock in 2026. Year to date, shares are up 27%.

Reuters reports:

Read more here.
Pinterest predicts lower revenue as it fights for digital ad dollars; Shares plunged

Pinterest stock sank 19% before the bell on Friday after forecasting first-quarter revenue below analysts’ estimates on Thursday.

Reuters reports:

Read more here.
China lifted the lid on outbound acquisitions for the first time this decade

Bloomberg reports:

Read more here.
Gold recovers after heavy losses, holds at $5,000

Bloomberg reports:

Read more here.

US inflation cools more than expected in January

Premarket Trending Tickers: DraftKings, Roku, and Maplebear

Wall Street’s AI angst is turning into a boon for Asia stocks

Rivian stock rises on Q4 results; Upcoming R2 EV on track for Q2 customer delivery

After the results are lost on the top and bottom lines, Applied Materials stocks rise

Pinterest predicts lower revenue as it fights for digital ad dollars; Shares plunged

China lifted the lid on outbound acquisitions for the first time this decade

Gold recovers after heavy losses, holds at $5,000

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