U.S. Stock Futures Slide Amid Inflation Worries and Rate-Cut Uncertainty

U.S. stock futures dropped on Friday as investors awaited inflation data that could impact the Federal Reserve's rate-cut decisions. AI technology stocks suffered a significant selloff, while the tech-heavy Nasdaq declined. Chipmaker stocks like Applied Materials showed gains despite the broader market dip.

U.S. stock futures fell on Friday, showing a potential worst week for the three main indexes since November, as traders awaited crucial inflation data to discern future Federal Reserve rate-cut actions.

The Consumer Price Index report for January, set for release at 8:30 a.m. ET, may reveal consistent price hikes. This follows a stronger jobs report earlier this week, raising doubts about the Fed's likelihood of maintaining high interest rates. Despite the uncertainty, the market sees a 70% chance for a June rate cut.

Software stocks were hit hard by AI-led selloffs, impacting sectors like trucking and brokerages. Chipmaker Applied Materials saw premarket gains after strong forecasts, highlighting the growing focus on AI capex among major companies. Meanwhile, trade developments, including tariff adjustments between the U.S. and Taiwan, added to the economic complexity, affecting steel and aluminum producers.

(With inputs from agencies.)