Stock Index Futures Climb After Tech Rout, Amazon Slips on CapEx Blowout

March S&P 500 E-Mini futures (ESH26) are up +0.58%, and March Nasdaq 100 E-Mini futures (NQH26) are up +0.69% this morning, rebounding after days of heavy selling as investors stepped in to buy the dip.

Investors also digest an earnings report from Amazon.com (AMZN). Shares of the e-commerce and technology giant slumped over -7% in pre-market trading after it unveiled plans to spend $200 billion this year on AI infrastructure, a sharp increase that outpaced revenue growth in its cloud unit. That stoked concerns that its massive AI bet may fail to pay off over the long term. At the same time, companies tied to the AI buildout got a boost from Amazon’s blowout capex plans, with Nvidia (NVDA) and Broadcom (AVGO) rising over +3% in pre-market trading.

Investors are now awaiting the release of the University of Michigan’s preliminary reading on U.S. consumer sentiment and comments from a Federal Reserve official.

In yesterday’s trading session, Wall Street’s major indices ended in the red. Most members of the Magnificent Seven stocks slumped, with Amazon.com (AMZN) and Microsoft (MSFT) falling over -4%. Also, cryptocurrency-exposed stocks sank after the price of Bitcoin tumbled more than -12%, with MARA Holdings (MARA) plummeting over -18%, and Strategy (MSTR) plunging over -17% to lead losers in the Nasdaq 100. In addition, Qualcomm (QCOM) slid over -8% after the largest maker of smartphone processors issued below-consensus FQ2 guidance. On the bullish side, McKesson Corp. (MCK) jumped more than +16% and was the top percentage gainer on the S&P 500 after the drug wholesaler posted upbeat FQ3 results and raised its full-year adjusted EPS guidance.

A Labor Department report released on Thursday showed that the U.S. JOLTs job openings unexpectedly fell to a 5-1/4-year low of 6.542 million in December, weaker than expectations of 7.200 million. Also, the number of Americans filing for initial jobless claims in the past week rose by +22K to an 8-week high of 231K, compared with the 212K expected.

“The latest labor figures reiterate that the U.S. jobs market is not firing on all cylinders, a risk the Fed and investors will have to take seriously should further deterioration occur,” said Bret Kenwell at eToro. “Volatility could persist, particularly if near-term uncertainty increases.”

Meanwhile, Atlanta Fed President Raphael Bostic said on Thursday that inflation remains his primary concern, reiterating that a still-strong labor market gives the central bank room to keep interest rates modestly restrictive. “It’s important that our policy stay at a moderately restrictive posture, because that is a posture that increases the likelihood that we will get inflation back to our 2% target,” Bostic said.

U.S. rate futures have priced in an 83.3% chance of no rate change and a 16.7% chance of a 25 basis point rate cut at the March FOMC meeting.

Today, investors will focus on the University of Michigan’s U.S. Consumer Sentiment Index, which is set to be released in a couple of hours. Economists, on average, forecast that the preliminary February figure will stand at 55.0, compared to 56.4 in January.

The Fed’s Consumer Credit report will also be released today. Economists expect the U.S. Consumer Credit to be $9 billion in December, compared to the previous figure of $4.23 billion.

In addition, market participants will be anticipating a speech from Fed Vice Chair Philip Jefferson.

Earlier this week, the Bureau of Labor Statistics said the January jobs report will be published on Wednesday, February 11th. The report was originally scheduled for release today, but was delayed due to the partial government shutdown.

On the earnings front, notable companies like Philip Morris International (PM), Biogen (BIIB), and Centene (CNC) are set to report their quarterly figures today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.191%, down -0.40%.

The Euro Stoxx 50 Index is up +0.61% this morning, attempting to end the volatile week on a positive note. Strength in defense stocks is leading the overall market higher on Friday, with Kongsberg Gruppen ASA (KOG.O.DX) jumping over +14% after saying it had secured a 140 million euros ($165 million) order from Germany and Sweden for remote weapon stations. Bank stocks also climbed. At the same time, automobile stocks tumbled, weighed down by a more than -22% plunge in Stellantis NV (STLAP.FP) after taking 22.2 billion euros ($26 billion) in charges. Also, technology stocks extended their declines. The benchmark index is on track to eke out a small weekly gain. Data from statistics agency Destatis released on Friday showed that Germany’s exports rose more than expected, while industrial output fell in December, underscoring ongoing uncertainty around the recovery of Europe’s largest economy. Separately, a European Central Bank survey showed that Eurozone inflation is expected to remain on the same trajectory as seen three months ago, falling below 2% this year before returning to target in 2027. Meanwhile, ECB Governing Council member Martins Kazaks wrote in a blog post on Friday that a sharp rise in the euro could prompt a monetary policy response from the central bank. The ECB kept the deposit rate unchanged at 2.00% on Thursday, as expected. In other corporate news, Novo Nordisk A/S (NOVOB.C.DX) climbed over +5% after the U.S. Food and Drug Administration threatened action against “illegal copycat drugs.”

Germany’s Exports, Imports, and Industrial Production data were released today.

The German December Exports rose +4.0% m/m, stronger than expectations of +1.0% m/m.

The German December Imports rose +1.4% m/m, stronger than expectations of +0.2% m/m.

The German December Industrial Production fell -1.9% m/m, weaker than expectations of -0.2% m/m.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.25%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.81%.

China’s Shanghai Composite Index closed lower today as a global selloff in technology stocks continued to drive risk-off sentiment. Technology stocks fell on Friday, tracking declines in their global peers amid rising investor anxiety over massive AI capital spending plans. At the same time, non-ferrous metal stocks advanced as gold found some support at the end of the week. The benchmark index posted losses for the week. Bob Savage, head of markets macro strategy at BNY, said, “Looking ahead to 2026, equity markets appear poised to navigate a more complex investment regime defined by diversification, valuation discipline, and geopolitical realities.” He added that “AI will remain a structural growth driver, but investor focus is shifting from broad-based enthusiasm toward differentiated business models, capital efficiency, and defensible revenue streams.” In corporate news, China’s largest hog breeder, Muyuan Foods, rose over +3% in its Hong Kong trading debut after raising $1.4 billion in the city’s largest listing so far this year. Investor attention now turns to China’s inflation data for January, scheduled for release next week, as recent volatility in gold prices could significantly feed into consumer inflation, according to analysts. Trading is expected to thin out gradually next week, ahead of the long Lunar New Year holidays, China’s biggest and most important festival.

Japan’s Nikkei 225 Stock Index closed higher today, reversing earlier losses as investors positioned for a victory by Prime Minister Sanae Takaichi’s Liberal Democratic Party at this weekend’s election. Local media reported that Takaichi’s LDP is likely to secure a landslide victory in the Lower House election. Energy and financial stocks outperformed on Friday. Automobile stocks also advanced, with Toyota Motor rising +2% after announcing a leadership shakeup and raising its full-year operating profit guidance. At the same time, pharmaceutical stocks sank after U.S. President Donald Trump’s website offering discounted prescription drugs for Americans went live. The benchmark index notched a weekly gain. Meanwhile, Bank of Japan policy board member Kazuyuki Masu said on Friday that the central bank could consider another interest rate increase in the near term as inflation moves closer to the 2% target. “What is vital from now on is to ensure that, through timely and appropriate policy interest-rate hikes, the underlying inflation rate remains below 2%,” Masu said. On the economic front, government data showed that Japan’s annual household spending, a key indicator of private consumption, fell more than expected in December. However, Japan’s household spending rose 0.9% in 2025 from a year earlier, marking the first increase in three years. Separately, preliminary data showed that Japan’s leading economic indicators index, which gauges the economic outlook for a few months ahead based on data such as job offers and consumer sentiment, rose to a 19-month high in December. In other corporate news, Ajinomoto jumped more than +13% after the food additive maker reported better-than-expected earnings and raised its annual profit outlook. Also, Isetan Mitsukoshi climbed over +7% after the department store operator boosted its full-year guidance. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +7.94% to 39.03.

The Japanese December Household Spending fell -2.9% m/m and -2.6% y/y, weaker than expectations of -1.3% m/m and -0.5% y/y.

The Japanese December Leading Index stood at 110.2, stronger than expectations of 109.8.

Pre-Market U.S. Stock Movers

Chip stocks are moving higher in pre-market trading, with Micron Technology (MU) and Marvell Technology (MRVL) climbing more than +4%.

Amazon.com (AMZN) slumped over -7% in pre-market trading after the e-commerce and technology giant unveiled plans to spend $200 billion this year on AI infrastructure, a sharp increase that outpaced revenue growth in its cloud unit.

Bloom Energy (BE) surged more than +12% in pre-market trading after the power generator posted upbeat Q4 results and provided strong FY26 guidance.

Reddit (RDDT) climbed over +8% in pre-market trading after the social media company reported better-than-expected Q4 results and issued above-consensus Q1 revenue guidance.

Molina Healthcare (MOH) plummeted more than -28% in pre-market trading after the managed care company reported an unexpected quarterly loss and issued disappointing FY26 guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday - February 6th

Philip Morris International (PM), Ubiquiti (UI), Cboe Global Markets (CBOE), Biogen (BIIB), AerCap Holdings (AER), The Carlyle Group (CG), Centene (CNC), nVent Electric (NVT), Roivant Sciences (ROIV), Plains All American Pipeline (PAA), AutoNation (AN), Freedom Holding (FRHC), Piper Sandler Companies (PIPR), MarketAxess Holdings (MKTX), White Mountains Insurance Group (WTM), Immunovant (IMVT), Plains GP Holdings (PAGP), Medical Properties Trust (MPT), RXO, Inc. (RXO), Under Armour (UA), Perella Weinberg Partners (PWP), Costamare (CMRE), Newell Brands (NWL), The Gorman-Rupp Company (GRC), Frontier Group Holdings (ULCC), Capital Clean Energy Carriers (CCEC), Proto Labs (PRLB), Prospect Capital (PSEC), Virtus Investment Partners (VRTS).