U.S. stock futures are modestly lower in premarket trading after yesterday’s sell-off in equities.

Major U.S. averages dropped on Thursday as fears around artificial intelligence disruption spread across the market, most notably into real estate, trucking and software sectors.

Cisco (CSCO) dumped 12% yesterday driven by the company’s disappointing guidance and a 5% slide in Apple (AAPL) weighed on the broader market.

All of the major indices are down over 1% this week heading into a holiday shortened week.

Investor focus turns to inflation data today with the delayed Consumer Price Index due this morning. The CPI is expected to show a 2.5% advance from a year earlier on both headline and core with a 0.3% month-over-month basis expectation.

Traders will also navigate earnings fallout after reports from Airbnb (ABNB), Coinbase (COIN), and Applied Materials (AMAT) among others. Markets are closed on Monday for the Presidents Day holiday.

Snapshot (as of 7 AM ET)

• Oil (/CL) – Oil prices are down 0.7% near $62.30 a barrel after falling in the previous session, and are set for their second weekly decline on receding concerns of an Iranian conflict that could affect supply and on forecasts supply will exceed demand this year.
• Gold (/GC) – Gold futures are up 0.8% near $4990, recovering slightly from a nearly one-week low in the previous session, as investors awaited key U.S. inflation figures for guidance on interest rate direction following robust jobs data that reduced expectations of rate cuts.
• Bitcoin (/BTC) – The Crypto Future is up 2.5% near 67,200 in premarket trading.
• VIX – The CBOE Volatility Index was up 18% on Thursday and settled at 20.82 as stocks sold off.
• U.S. Dollar (/DX) – The dollar is slightly higher around 96.9.

Biggest Premarket Movers (as of 7 AM ET - Mark % Change)

1. Applied Materials (AMAT): +10.24%
2. Arista Networks (ANET): +9.68%
3. Coinbase (COIN): +5.25%
4. Airbnb (ABNB): +5.21%
5. Merck (MRK): +1.90%

1. Steel Dynamics (STLD): -5.77%
2. Expedia (EXPE): -4.59%
3. Nucor (NUE): -3.34%
4. Norwegian Cruise Line (NCLH): -1.59%
5. CRH Public (CRH): -1.40%

Economic Data

• 8:30 AM ET: CPI

Notable Earnings

• Premarket: AAP, ALK, CCJ, ENB, MRNA, SXT, TRP, WEN
• Postmarket: None
• Premarket Tuesday: BLDR, CNH, DTE, ET, FLR, GPC, HRI, LH, LDOS, MDT, SUN, VMI, VMC, WSO
• Postmarket Tuesday: CDNS, CZR, CE, DVN, EQT, EXE, FE, HL, HUN, KVUE, LZB, PANW, RSG, TOL

Upgrades/Downgrades

• Summit Insights upgrades Applied Materials (AMAT) to Buy from Hold
• HSBC upgrades Crowdstrike (CRWD) to Buy from Hold
• Deutsche Bank upgrades Airbnb (ABNB) to Buy from Hold
• BMO Capital downgrades Dollar Tree (DLTR) to Underperform from Market Perform
• Freedom Capital downgrades Amgen (AMGN) to Hold from Buy
• JPMorgan downgrades Norwegian Cruise Line (NCLH) to Neutral from Overweight

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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