U.S. Stocks May Regain Ground Following Recent Slump

Stocks are likely to move to the upside in early trading on Friday, regaining ground after moving sharply lower over the past few sessions. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.6 percent.

Traders may look to pick up stocks at reduced levels following the recent tech-led weakness, which dragged the Nasdaq down to its lowest closing level in over two months.

Activity may be somewhat subdued, however, as the Labor Department’s closely watched monthly jobs report that was originally due to be released this morning has been delayed until next Wednesday.

Lingering concerns about AI spending may also limit the upside for the markets along with a slump by shares of Amazon (AMZN).

Amazon is plunging by 8.5 percent in pre-market trading after the online retail giant reported slightly weaker than expected fourth quarter earnings and forecast 2026 capital spending well above analyst estimates.

“All the hyperscalers are competing to win the AI race, for which the prize could be significant,” said Russ Mould, investment director at AJ Bell. “However, investors are being asked to countenance enormous amounts of cash going out the door in service of this goal.”

He added, “With the exact direction and trajectory of artificial intelligence still uncertain there is understandable concern that this money could be wasted.”

Shortly after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month. The consumer sentiment index is expected to dip to 55.5 in February after jumping to 56.4 in January.

Following the mixed performance seen during Wednesday’s session, the major U.S. stock indexes all moved sharply lower during trading on Thursday. The tech-heavy Nasdaq led the way lower, tumbling to its lowest closing level in over two months.

The major averages ended the day off their worst levels of the session but still firmly negative. The Nasdaq plunged 363.99 points or 1.6 percent to 22,540.59, the S&P 500 tumbled 84.32 points or 1.2 percent to 6,798.40 and the Dow slumped 592.58 points or 1.2 percent to 48,908.72.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index advanced by 0.8 percent, while Hong Kong’s Hang Seng Index slid by 1.2 percent.

The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.1 percent, the U.K.’s FTSE 100 Index is up by 0.1 percent and the German DAX Index is up by 0.5 percent.

In commodities trading, crude oil futures are slipping $0.14 to $63.15 a barrel after tumbling $1.85 to $63.29 a barrel on Thursday. Meanwhile, after sliding $61.30 to $4,889.50 ounce in the previous session, gold futures are jumping $57.70 to $4,947.20 an ounce.

On the currency front, the U.S. dollar is trading at 157.01 yen versus the 157.03 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1804 compared to yesterday’s $1.1775.