Futures tied to the main U.S. equity benchmarks edged higher ahead of a closely watched employment report that could shape expectations for Federal Reserve rate policy later this year. Ford Motor Company (NYSE:F) recorded a sizeable charge related to a delay in U.S. tariff relief, but stronger-than-anticipated guidance supported its shares in extended trading. Meanwhile, an activist investor is reportedly urging Warner Bros. Discovery, Inc. (NASDAQ:WBD) to reject an approach from Netflix, Inc. (NASDAQ:NFLX), adding another chapter to the protracted takeover story.
Futures tick higher
By 02:33 ET, Dow futures were up 91 points, or 0.2%. S&P 500 futures gained 12 points, also 0.2%, while Nasdaq 100 futures advanced 48 points, or 0.2%.
On Tuesday, the Dow Jones Industrial Average closed at a fresh record, but the S&P 500 and Nasdaq Composite slipped, pressured in part by renewed concerns about the impact of emerging artificial intelligence tools.
Financial stocks were hit after wealth management start-up Altruis launched an AI-driven tax planning product. The Charles Schwab Corporation (NYSE:SCHW) fell more than 7%, while Raymond James Financial, Inc. (NYSE:RJF) posted its steepest one-day drop since the height of the 2020 pandemic turmoil.
The selloff echoed recent AI-related weakness in insurance brokers and software names, reflecting concerns that the rapidly evolving technology could disrupt a wide range of industries, though some analysts argue these fears may be exaggerated.
Weak retail sales data also dampened sentiment, prompting speculation that economic growth could slow in 2026. Expectations for a more dovish Federal Reserve stance increased, with CME FedWatch showing higher odds of a rate cut as early as April.
Employment report awaited
Against this backdrop, the spotlight turns to the delayed January U.S. jobs report.
Economists expect payrolls to have risen by about 66,000 in January, up from 50,000 in December.
At its most recent meeting, the Federal Reserve described the labor market as “stabilizing” after a period of weakness. Combined with still-elevated but steady inflation, this assessment led policymakers to keep rates unchanged in the 3.5% to 3.75% range.
Earlier this week, White House economic adviser Kevin Hassett cautioned that advances in AI could weigh on job growth in the coming months, even as productivity improves.
Uncertainty around employment and inflation — the Fed’s two key mandates — clouds the outlook for 2026. Today’s payrolls figures, along with Friday’s consumer price data, may provide clearer signals about the direction of rates next year.
“Today’s jobs report is a pivotal event for the [foreign exchange] market. A materially weak print would likely pave the way for markets to price in a cut in April,” analysts at ING Groep N.V. wrote.
Ford hit by tariff delay
Ford shares edged higher in after-hours trading after the company issued guidance that topped expectations.
The automaker projected annual operating income of roughly $9 billion, ahead of Wall Street’s $8.85 billion estimate. Forecast free cash flow of $5.5 billion also exceeded projections.
However, Ford posted a fourth-quarter operating loss of $11.1 billion — the largest in its history — after taking a $900 million charge tied to a delay in the implementation of a Trump-era tariff relief program.
Chief Financial Officer Sherry House said the company was informed of the “unexpected” shift “very late” in 2025.
Warner battle intensifies
Separately, takeover developments around Warner Bros. Discovery continued to unfold.
The Wall Street Journal reported that activist investor Ancora Holdings has accumulated a stake worth roughly $200 million in Warner and plans to press the company to reject Netflix’s substantial bid for its film and television assets and HBO Max platform.
According to the report, Ancora may disclose its position as soon as Wednesday and argue that Warner has not sufficiently considered a competing proposal from Paramount Skydance, led by David Ellison, which envisions acquiring the entire company rather than select divisions.
Paramount has reportedly sweetened its offer by proposing additional cash payments to Warner shareholders for each quarter the transaction remains incomplete and by covering any breakup fee linked to abandoning the Netflix deal. However, the overall bid — valued at $108.4 billion including debt — remains unchanged.
Gold and oil move higher
Gold prices climbed after weak U.S. retail sales reinforced expectations of cooling economic momentum, heightening anticipation around payrolls data.
Spot gold rose 0.4% to $5,047.08 per ounce, while futures gained 0.8% to $5,071.34, though prices remained below recent record highs.
Oil prices also advanced. Brent crude increased 1.2% to $69.64 per barrel, and U.S. West Texas Intermediate gained 1.3% to $64.81 per barrel.