13.02.202613:38:27UTC+00US Futures Erase Losses After CPI

US equity futures erased earlier modest losses on Friday after inflation data showed no upside surprise. The headline inflation rate declined in January and core inflation eased in line with expectations, reinforcing market expectations that the Federal Reserve will deliver multiple rate cuts this year. The three major indices were little changed, with sentiment still weighed down by yesterday’s sharp selloff in AI-related stocks.

Tech shares paused their decline but remained on track to drag the broader market lower for a third consecutive week, amid growing skepticism over the sustainability of elevated AI-related capital expenditures. At the same time, advances in automation technology pressured software service providers, prompting further sector rotation.

Oracle, Palantir, and Microsoft traded flat in premarket action after steep drops in the previous session, while Micron surrendered part of its recent gains. By contrast, Applied Materials and Arista Networks each jumped about 10% in premarket trading on the back of strong earnings results.