US Stock Futures Fall as Block AI Layoffs and Nvidia Losses Hit Markets

TLDR

• US stock futures fell Friday, with Dow futures down over 300 points, dragged by AI disruption fears and a tech selloff led by Nvidia
• Block announced it will cut nearly half its workforce, betting on AI to reshape its business — its stock jumped ~20% in premarket
• Bitcoin was flat at $68,007 as crypto tracked broader risk-off sentiment alongside falling tech stocks
• January’s Producer Price Index (PPI) is due Friday, with headline and core wholesale inflation both forecast at 0.3%
• Berkshire Hathaway’s new CEO Greg Abel will publish his first shareholder letter Saturday alongside the company’s 2025 results

US stock futures dropped Friday morning as fears about AI disrupting jobs and businesses continued to weigh on markets. The moves followed a rough Thursday session for major indexes.

Dow Jones futures fell around 300 points, or 0.6%. S&P 500 futures slipped 0.4%, and Nasdaq 100 futures were down 0.4%.

The declines came even after Nvidia posted strong fourth-quarter earnings Thursday. Investors had expected bigger results, and ongoing concerns about Big Tech’s heavy spending on AI infrastructure kept the mood cautious.

Deutsche Bank analyst Jim Reid noted the earnings surprises “weren’t on the scale of what markets got used to in 2023-24.” He added that the Magnificent Seven stocks were trading more than 7% below their October peak.

Block, the fintech company co-founded by Jack Dorsey, said it would cut nearly half its workforce. The company cited AI’s ability to reshape its business needs as the reason for the structural overhaul.

Dorsey said he believes most companies will make similar cuts within the next year. Despite the job losses, Block’s stock surged roughly 20% in premarket trading on the news.

The announcement added to a week of growing concern that AI will displace workers across service industries including software, wealth management, and real estate.

Crypto Follows Risk-Off Mood

Bitcoin was flat at $68,007 over the 24 hours to Friday morning. The cryptocurrency has been tracking broader market sentiment, which turned cautious this week.

Ethereum and XRP also fell alongside Bitcoin earlier in the week, with crypto gains unwinding in step with the tech stock selloff.

The dollar slipped 0.1% against a basket of peer currencies. The 10-year US Treasury yield held steady at 4.01%, after earlier hitting a three-month low below 4%.

Oil prices edged higher. Brent crude gained 0.5% to $71.22 a barrel, and West Texas Intermediate rose 0.7% to $65.65, as traders watched US-Iran nuclear talks that ended without a deal.

PPI Data and Berkshire Letter Ahead

January’s Producer Price Index report was scheduled for release Friday morning. Economists forecast both headline and core PPI at 0.3% month-on-month.

In other corporate news, Netflix shares rose after the company dropped its bid for Warner Bros. Discovery. That left Paramount Skydance, linked to Oracle, as the likely buyer of the Hollywood studio.

Berkshire Hathaway CEO Greg Abel is expected to release his first annual shareholder letter on Saturday. It will appear alongside the company’s quarterly earnings and full-year 2025 results, Abel’s first since taking over from Warren Buffett.

The post US Stock Futures Fall as Block AI Layoffs and Nvidia Losses Hit Markets appeared first on CoinCentral.