Dow Jones futures fall as AI concerns drag Nasdaq, inflation data eyed

US stock index futures moved lower on Friday, capping a volatile month for equities as investors weighed uncertainty around artificial intelligence spending, shifting trade policy and incoming inflation data.

The cautious tone left major benchmarks on track for mixed monthly performances, with technology shares again leading market weakness.

Dow Jones futures fell 347 points or 0.7% while the S&P 500 futures declined by 0.52% and the Nasdaq futures slipped 0.53%.

The declines came as investors prepared for a January producer prices report due before the opening bell, a key indicator that could shape expectations for the Federal Reserve’s interest-rate path.

The pullback followed a turbulent period for technology stocks.

The Nasdaq was staring at its steepest monthly drop since March 2025, reflecting growing concern about whether massive investments in artificial intelligence will generate sufficient returns.

AI concerns weigh on technology shares

Technology shares have experienced sharp swings throughout the month, even after strong corporate earnings.

Nvidia fell 0.16% in premarket trading after sliding more than 5% in the previous session, suggesting investor confidence in AI-related stocks remained fragile despite upbeat results.

Chipmakers including AMD and Broadcom also declined, while software companies saw pressure spread across multiple industries.

Earlier in the year, fears of AI-led disruption affected sectors such as financial brokerages, data analytics, legal services, real estate services and trucking.

The Nasdaq closed below its 50-day moving average for the 17th straight session, a widely followed technical indicator viewed as a gauge of the intermediate-term trend.

Through Thursday, the index was down about 2.5% for February, highlighting persistent caution among investors.

Individual stocks amplified the market’s uneven tone.

Zscaler fell 9.3% after reporting a wider second-quarter net loss, while Intuit declined 2.9% after forecasting third-quarter profit below estimates.

Duolingo plunged nearly 25% after issuing weaker-than-expected bookings guidance.

In contrast, Block surged 20.3% after announcing plans to cut more than 4,000 jobs as part of an overhaul to embed artificial intelligence across operations.

Dell rose 12.2% after projecting that revenue from AI-optimized servers would double by fiscal year 2027 and pledging increased shareholder returns.

Trade policy and corporate deal activity

Market volatility was also influenced by trade developments.

The US Supreme Court last week voided most duties imposed by President Donald Trump the prior year.

In response, Trump introduced a temporary global tariff of 10% that took effect on Tuesday, adding a new layer of uncertainty to the outlook.

Paramount Skydance advanced 7.1% after winning the takeover contest for Warner Bros. Discovery’s assets, while Netflix gained 7.5% after exiting the bidding.

Warner Bros. Discovery shares fell 1.3% in reaction.

Investors await inflation signals

Attention now turns to economic data that could guide monetary policy expectations.

The January producer price index reading, along with construction-spending figures, is expected to offer insight into inflation trends and potential Federal Reserve rate decisions.

Safe-haven positioning has been evident in recent sessions as investors monitor both economic and geopolitical risks.

Bitcoin fell 3.2% in the last 24 hours to trade around $66,000.

Comex gold futures were up

The broader S&P 500 was headed for a smaller monthly decline, while the Dow industrials remained modestly positive for February.

For now, markets remain caught between strong corporate performance in certain sectors and persistent doubts about the payoff from AI investment.

Until clearer signals emerge from inflation data and earnings trends, investors appear reluctant to extend risk exposure, keeping equity futures under pressure heading into the final trading day of the month.