US stock index futures steadied on Friday after a bruising selloff in technology shares earlier in the week, offering tentative signs that the worst of the tech-led rout may be easing.
Still, investor unease around artificial-intelligence spending remained firmly in focus, with Amazon sliding sharply in premarket trading after unveiling another major jump in capital expenditures.
At the same time, some AI-linked and software stocks clawed back gains, while broader market measures pointed to a rebound following Thursday’s steep declines.
Futures rebound after tech rout
US equity futures rose in early trading, with S&P 500 futures up 0.7%, Nasdaq 100 futures advancing 0.86%, and Dow Jones futures gaining nearly 271 points.
The rebound followed a sharp tech selloff that pushed the Nasdaq to its lowest close in more than two months on Thursday and put the index on track for its steepest weekly decline in more than 10 months.
The broader Nasdaq composite has fallen 4.5% since Tuesday, marking its worst three-day stretch since April.
The CBOE Volatility Index, often referred to as Wall Street’s fear gauge, fell for the first time in three sessions, dropping 1.31 points to 20.46.
Despite Friday’s bounce, major benchmarks were still on course for weekly losses.
For the first week of February, the S&P 500 is down about 2%, the Nasdaq has fallen roughly 4%, and the Dow Jones Industrial Average is little changed.
Amazon capex plan rattles investors
Amazon emerged as a notable laggard, sliding 7.13% in premarket trading after forecasting a more than 50% jump in capital expenditures this year.
The company later outlined plans for roughly $200 billion in capital investment, largely tied to expanding AI infrastructure.
The move added to concerns that Big Tech’s aggressive spending plans may be outpacing near-term monetization.
Investor skepticism has intensified since Microsoft’s blowout capex plans, announced late last month, brought hyperscaler investment budgets under sharper scrutiny.
Other megacaps were mixed, with Alphabet slipping 0.6% in premarket trading, while Microsoft gained as much as 1.2%.
AI-linked stocks recover, rotation continues
Several AI-linked and semiconductor stocks led Friday’s rebound.
Nvidia, the last of the “Magnificent Seven” yet to report earnings and a key beneficiary of higher AI spending, rose 3%.
Broadcom gained over 3.6%, while Micron Technology climbed as much as 3.7%. Advanced Micro Devices also advanced nearly 2.13%.
Software and data services shares showed signs of stabilizing after a punishing week driven by fears that fast-improving AI tools could erode demand for traditional businesses.
ServiceNow rose about 1.9%, and CrowdStrike gained 2.6%, although the S&P 500 Software and Services index was still headed for a near 10% weekly decline, its worst since March 2020.
Elsewhere, crypto-related stocks rebounded as digital assets recovered some ground, with Coinbase jumping 5.1%, even as bitcoin remained down about 50% from its October peak.
Roblox surged 8.9% after forecasting fiscal 2026 bookings above Wall Street expectations.
Meanwhile, the rotation into defensive sectors such as consumer staples and telecoms continued, underscoring that the AI-driven rally is facing a significant stress test as investors reassess risk and spending discipline.
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