US futures
Dow futures 1%, S&P futures 0.7% & Nasdaq futures 0.80%
In Europe
FTSE 0.45& DAX 0.05%
- Wall Street falls as AI worries remain
- US PPI is hotter than forecast
- Oil jumps 3% ahead of OPEC meeting
Stocks extend declines amid persistent AI worries
U.S. stocks are pointing to a weaker open, extending losses from the previous session, as the markets continue to weigh up their position on AI infrastructure companies.
Markets have been jittery this week amid worries about the potential impact of AI on specific sectors of the tech industry.
Those fears eased on Tuesday following the Anthropic agency event, which highlighted the potential for AI startups to partner with software firms rather than replace them. However, the upside was short-lived with AI worries returning despite Nvidia posting its 14th straight revenue beat.
Another area of anxiety has been the ongoing tensions between the US and Iran over Tehran's nuclear programme. The two sides held talks in Geneva on Thursday and agreed to resume talks next week.
On the data front, PPI was hotter than expected, rising on a monthly basis by 0.5% in December and ahead of the 0.3% forecast. Core PPI also jumped from 3.3% to 3.6% in January. The data support the view that the Federal Reserve is in no rush to cut interest rates further until there are clearer signs of inflation cooling.
Corporate News
Paramount Sky Dances has become the likely winner of the long-standing battle for Hollywood Warner Bros discovery after a stunning decision by Netflix to back away from its rival offer. Netflix price jumped premarket. Netflix backed away after Paramount's $ 31-per-share offer for the company, which was superior to Netflix's – Netflix was given four days to respond, but chose to drop its $ 27.75-per-share proposal.
HP share price is jumping 12% after better-than-expected Q4 earnings that benefited from an accelerating corporate pivot towards AI infrastructure. EPS was $3.89 ahead of the $3.52 expected on revenue of $33.4 billion a 39% year on year increase.
Nasdaq forecast – technical analysis.
The Nasdaq's recovery from the 24,150 low has failed to rise above the 50 SMA, bringing a bearish bias to the price action even as it trades within a familiar pattern. Sellers supported by RSI below 50 will look to break below 24,700 support to expose the 200 SMA at 24,170. Below here, attention turns to 24,000. Buyers will look to rise above the 50 SMA to stage a recovery towards 25,850 and 26k.
FX markets – USD rises, GBP/USD falls
The U.S. Dollar is edging lower but is set to and the weak flat as investors await the next catalyst. While there are plenty of factors influencing the dollar, none are sufficiently strong to drive a meaningful move. Attention will be on the US nonfarm payrolls next week.
EUR/USD is unchanged as investors look ahead to German CPI data, which is expected to show that inflation rose 0.5% month on month in February, up from 0.1% in January and on an annual basis calls to 2% down from 2.1% The data is not expected to impact the ecds outlook for rates which are expected to remain on hold this year.
GBP/USD is falling after an election in a northern England Labour stronghold, a resounding defeat for Prime Minister Keir Starmer's party. The left-wing Green Party scored a landslide victory in an area of Manchester that Labour had dominated for almost a century. The results put some pressure on Starmer to prove he should keep his job
Oil jumps 3% ahead of OPEC meeting
Oil prices are rising, jumping 3% on Friday, as traders remain focused on potential supply disruptions amid ongoing nuclear talks between the US and Iran.
The US and Iran held direct talks in Geneva on Thursday after President Trump ordered a buildup of military forces in the Middle East.
Talks appear to have hit a sticking point; however, the US insists that Iran stick to 0 enrichment. However, an Omani mediator insists that the two sides have made progress. Negotiations are set to continue in Vienna next week, which offers some hope of a peaceful resolution. However, military action remains on the table. As a result, geopolitical risk premium remains elevated.
Meanwhile, OPEC+ is considering raising oil output by 137,000 barrels per day for April at its March 1st meeting.
