European Shares Seen Little Changed At Open

European stocks are seen opening little changed on Friday as investors monitor the latest AI headlines and keep a close eye on Middle East tensions.

U.S. fintech and digital payments giant Block said it’s laying off more than 4,000 employees, or about half of its head count, as part of a restructuring to become “smaller”, “flatter,” and AI-first.

Tech company Dell Technologies achieved record annual and quarterly revenue and said it expects very high sales from its AI servers this year, driven by increased demand and strong execution.

U.S. stock futures ticked lower amid concerns about excessive levels of investment across the AI space and doubts about the pace of returns from those investments.

On the geopolitical front, Iran and the United States have concluded a third round of nuclear talks in Geneva on Thursday, with no breakthrough yet to avert potential U.S. military action in the region.

According to the Wall Street Journal, Iran rejected major U.S. proposals, including transferring enriched uranium abroad, halting enrichment, and dismantling certain nuclear sites.

Both sides are planning to resume negotiations shortly following consultations in their respective capitals.

The U.S. economic calendar remains light, with the Labor Department’s report on producer price inflation likely to be in the spotlight later today.

Asian markets were mixed as tech stocks tumbled following a steep fall in Nvidia shares overnight.

Gold was little changed at $5,187 an ounce as a drop in U.S. Treasury yields offset pressure from a stronger dollar.

Oil prices were marginally higher in lackluster trade after the United States and Iran agreed to continue their talks.

U.S. stocks ended mostly lower overnight as concerns over a potential artificial intelligence (AI) bubble overshadowed Nvidia’s strong earnings results and upbeat guidance.

In economic news, data showed the number of Americans filing new applications for jobless benefits increased slightly last week.

The tech-heavy Nasdaq Composite fell 1.2 percent and the S&P 500 shed half a percent while the narrower Dow finished marginally higher.

European stocks rose broadly on Thursday amid a flurry of corporate earnings releases.

The pan-European STOXX 600 finished marginally lower. The German DAX rose half a percent, France’s CAC 40 surged 0.7 percent and the U.K.’s FTSE 100 added 0.4 percent.

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