U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings

U.S. stock index futures moved modestly higher on Wednesday evening after Wall Street ended the regular session mostly lower, as investors continued to grapple with a deepening technology selloff driven by AI disruption fears, mixed corporate earnings, and fresh labor market signals. Futures tied to the S&P 500 rose about 0.3%, Nasdaq 100 futures gained roughly 0.4%, while Dow Jones futures were largely unchanged, reflecting cautious sentiment heading into the next trading day.

During Wednesday’s regular session, the S&P 500 slipped around 0.5% and the Nasdaq Composite dropped nearly 1.5%, weighed down by heavy losses in technology and AI-related stocks. In contrast, the Dow Jones Industrial Average gained approximately 0.5% as investors rotated into defensive and value-oriented names, highlighting a clear divergence within the broader market.

Technology stocks continued to bear the brunt of selling pressure, extending a sector-wide rout that has persisted into early February. Concerns have grown that rapid advances in artificial intelligence could disrupt traditional business models, intensify competition, and compress profit margins for established companies. Software and services stocks were particularly weak, reflecting fears over pricing pressure and long-term profitability.

Advanced Micro Devices shares plunged about 17% after the chipmaker delivered earnings and guidance that fell short of lofty market expectations. Despite citing strong AI-related demand, investors focused on intensifying competition and potential pricing challenges in data centers, marking one of AMD’s steepest single-day declines in years. Alphabet’s earnings also drew attention after the bell, with the Google parent reporting solid advertising revenue while reaffirming aggressive AI investment plans. However, concerns over near-term profitability weighed on sentiment, sending Alphabet shares lower in extended trading. Qualcomm also disappointed investors, with its stock sliding sharply after issuing weaker-than-expected revenue and profit guidance, citing a global memory chip shortage.

On the economic front, market sentiment was influenced by signs of a cooling labor market. Private payroll data showed job growth of just 22,000 in January, well below expectations. With the monthly nonfarm payrolls report delayed due to a government shutdown, investors are now closely watching weekly jobless claims for further clues on U.S. labor market strength and the broader economic outlook.