US stocks opened Friday's trading lower, poised to build on a broad market sell-off as Wall Street digested a cooler-than-expected inflation reading for a steer on the path of interest rates.

The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) both hovered near the flatline, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.1% the day after intense selling pressure on tech stocks.

Inflation cooled more than expected in January, data released Friday by the Bureau of Labor Statistics showed. The Consumer Price Index showed that consumer prices increased 0.2% in January from a month earlier, and 2.4% on an annual basis.

The report is likely to shape expectations for an already complicated Federal Reserve policy. Traders revived some bets on a June cut, with a majority expecting a quarter-point reduction that month. Most bets remain on two cuts by the end of 2026, though a larger percentage of traders is now betting on more reductions.

Meanwhile, caution prevails after a day of heavy selling as fears about AI disruption spilled into sectors such as real estate, logistics, and transportation — "old economy" names previously seen as a safe alternative to AI-tied stocks. Techs got pummeled, with all seven of the “Magnificent Seven” megacaps finishing lower.

That may be set to resume as investors scrutinize the latest earnings for the next "shoot first, ask questions later" AI scare. Applied Materials (AMAT) stock surged over 13% as the chip toolmaker's upbeat outlook mirrored robust AI demand. But Pinterest (PINS) shares tumbled about 25% as revenue fell short and analysts fretted about AI risks to its discovery platform.

On the earnings front, Rivian (RIVN) shares jumped more than 25% following its fourth quarter earnings beat late Thursday. The EV maker said its R2 midsize model is on track for delivery before the summer. Moderna (MRNA) also gained roughly 6% after its morning earnings report, rebounding from a 10% drop in share value this week as the FDA rejected a new flu vaccine.

The US stock market opened in the red on Friday after a broad market sell-off as Wall Street digested a cooler-than-expected inflation reading.

The Dow Jones Industrial Average (^DJI) and tech-heavy Nasdaq Composite (^IXIC) both shed roughly 0.4%, while the S&P 500 (^GSPC) fell roughly 0.2% the day after intense selling pressure on tech stocks.

Inflation cooled more than expected in January, data released Friday by the Bureau of Labor Statistics showed, as consumer prices increased 0.2% in January from a month earlier and 2.4% on an annual basis. So-called \\"core\\" CPI ticked up by 0.3% month-on-month and 2.5% year-on-year.

More than half of traders are now pricing in a 25-basis-point cut by June, but most bets still remain on two cuts by the end of 2026.

On the earnings front, Rivian (RIVN) shares jumped more than 23% following its fourth quarter earnings beat late Thursday, while Pinterest (PINS) shares shed more than 20% on a revenue miss and concerns about AI.

Consumer prices rose 0.2% in January over the previous month, according to data released by the Bureau of Labor Statistics on Friday morning, cooling more than economists had expected. The inflation measure rose 2.4% year-on-year.

The so-called \\"core\\" consumer price index, which excludes the often volatile food and energy categories, rose by 0.3% from the previous month and 2.5% over the previous year.

The headline increases in inflation were just below economists' expectations of gains of 0.3% on a monthly basis and 2.5% on a yearly basis. January's core CPI readings were directly in line with expectations month-on-month and year-on-year.

The readings on inflation swung traders' outlook for rate cuts from the Federal Reserve, now pricing in a 51% chance of at least one 25 basis-point cut by the Fed's June meeting. Though, traders remain broadly convinced the Fed will hold rates steady in its upcoming March meeting, with less than 10% pricing in a rate cut at that meeting.

DraftKings (DKNG) stock fell 17% before the bell on Friday after the US gambling company missed analyst expectations for this year's guidance as it steps up its investments in prediction markets.

Roku (ROKU) stock rose 15% during premarket hours after the streaming company beat analysts' estimates for fourth quarter earnings. Roku also issued strong guidance for the year.

Maplebear (CART), also known as Instacart, saw its stock jump by 12% before the bell today after beating analysts estimates for revenue, which rose 12% to $992 million. However, the group's fourth quarter earnings were dented by a $60 million settlement with the Federal Trade Commission amid claims that it used underhand tactics to raise costs for shoppers.

From Bloomberg:

Wall Street’s fears of business disruption caused by artificial intelligence are turning into a blessing for Asian stocks, fueling demand for the region’s leading chipmakers that dominate the industry’s supply chain.

The MSCI Asia Pacific Index has risen more than 12% in 2026, in contrast to losses in US benchmarks as shares were sold off on fears that AI models may threaten the business of software, legal and real estate service providers. The S&P 500 (^GSPC) is down 0.2% for the year, while the technology-heavy Nasdaq 100 (^NDX) gauge has lost around 2%.

The divergence underscores global funds’ shift of preference from AI pioneers burdened by massive spending toward hardware producers with strong pricing power, many of whom are in Asia. Surging memory chip prices have been a boon for the region’s heavyweights such as Samsung Electronics Co. (005930.KS, SSNLF), while Taiwan Semiconductor Manufacturing Co.’s (TSM, 2330.TW) irreplaceable role as the world’s leading contract chipmaker has provided support for Taiwanese stocks.

“The main worry of the US is hyperscaler spending money,” said Richard Tang, head of research Hong Kong at Julius Baer. “Most of Asia’s tech exposure is upstream. Whoever wins in the end, upstream will still collect revenue from downstream players.”

Read more here.

Rivian (RIVN) stock soared 19% during premarket hours on Friday following the release of better-than-expected fourth-quarter results on Thursday.

Yahoo Finance's Pras Subramanian reports:

For the quarter, Rivian reported revenue of $1.286 billion versus $1.26 billion, per Bloomberg consensus estimates, down around 27% from a year ago. Rivian attributed the revenue declines to the loss of regulatory emissions credit sales, the expiration of the federal EV tax credit, and lower average selling prices.

The company posted an adjusted loss per share of $0.59 versus $0.69 expected, with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $465 million versus $568.2 million expected.

Rivian stock surged over 10% in after-hours trade.

Crucially, the company said its upcoming R2 midsize vehicle is targeting customer deliveries for the second quarter, after early manufacturing validation builds rolled off the assembly line in January.

And for a second quarter in a row, the company posted a gross profit of $120 million, broken down between a loss of $59 million for the automotive segment and a $179 million gain from software and services. Rivian said the jump in software and services profit is due to \\"vehicle architecture and software development services\\" stemming from its joint venture with Volkswagen (VOW3.DE).

Read the full story here.

Applied Materials (AMAT) stock climbed 11% during premarket hours on Friday after the ⁠semiconductor equipment maker beat Wall Street expectations on the top and bottom lines.

The after-hours reaction to Applied Materials' results added to the strong run for the stock in 2026. Year to date, shares are up 27%.

Reuters reports:

The company is ​also expected ​to cash ​in on a ‌worldwide memory shortage, with memory providers boosting investment in increasing their manufacturing capacity.

Applied Materials expects second-quarter sales of about $7.65 billion, plus or minus $500 ‌million, compared with ​estimates of $7.01 billion, according ​to ​data compiled by LSEG.

The company ‌expects second-quarter adjusted profit ​of ​about $2.64 per share, plus or minus 20 cents, compared with estimates ​of profit ‌of $2.28.

Read more here.

Pinterest stock sank 19% before the bell on Friday after forecasting first quarter revenue below analysts' estimates on Thursday.

Reuters reports:

The results underscore the image-sharing platform's ongoing struggle to compete ‌for advertising dollars against deep-pocketed platforms, sending its shares ‌down 12% in extended trading.

For the first quarter, the company sees revenue in the range of $951 ‌million to $971 million, below the analysts' average ​estimate of $980.1 million, according to data ​compiled by LSEG.

The company's ​ended 2025 with 619 million global monthly active ‌users, up from the 553 million ​it had reported ​in 2024, a sign that Pinterest's core product remains appealing to consumers seeking inspiration for everything from home decor to ​fashion and recipes.

Revenue ‌for the fourth quarter grew 14% to $1.32 billion, largely ​in line with estimates of $1.33 billion.

Read more here.

Bloomberg reports:

After Beijing slammed them shut about a decade ago, the gates have flung open again for Chinese firms to go on overseas acquisition sprees.

In January alone, the volume of outbound mergers and acquisitions from Greater China approached $12 billion, the most for the first month of a year since 2017. The shopping list included high-profile names like German sports brand Puma SE and Canadian miner Allied Gold Corp.

The turnaround is gathering momentum after a prolonged lull that began in the mid to late 2010s, when China capped outbound investment to rein in exuberant spending. One particularly high-profile case was HNA Group Co., which went on a debt-fueled international binge into names such as Hilton Worldwide Holdings Inc. and Deutsche Bank AG before collapsing.

“We have seen a pickup in outbound M&A interest from China,” said Richard Griffiths, BNP Paribas SA’s head of M&A in Asia Pacific. “Many new situations are being evaluated at the moment and we expect more significant deals to be announced in 2026.”

Read more here.

Bloomberg reports:

Gold (GC=F) clawed back some losses after a sudden selloff in the previous session, with dip-buyers snapping up the metal ahead of key US inflation data.

Bullion rose as much as 1.4% on Friday, having lost 3.2% in the previous session – the biggest one-day fall in a week. That decline accompanied jitters on Wall Street, where prices buckled across asset classes on concern over the impact of AI on companies’ earnings. The pullback in gold may have been amplified by margin calls and algorithmic trading.

The selloff in US stocks spilled over into precious metals, as some investors with broad holdings were forced to sell commodities to cover margin calls, said Liu Shiyao, an analyst with Zijin Tianfeng Futures Co. “In many cases, investors hold these assets at the same time: when one side is sold off, the other faces redemption pressure,” she said. “However, the impact won’t be too significant. Gold is still in a consolidation phase.”

The pullback was likely intensified by selling from commodity trading advisers using computer models to bet on price moves, said Michael Ball, a macro strategist at Bloomberg.

Read more here.