U.S. stock index futures moved slightly lower on Friday as investors weighed fresh earnings from major technology companies and reassessed sentiment around artificial intelligence-driven trades. Paramount Skydance (NASDAQ:PSKY) appears set to prevail in the takeover contest for Warner Bros. Discovery (NASDAQ:WBD) after Netflix (NASDAQ:NFLX) withdrew its competing offer, while AI firm Anthropic entered a dispute with the Pentagon. Meanwhile, Jack Dorsey’s Block (NYSE:XYZ) surged after announcing large-scale job cuts, and oil prices edged higher.
Futures drift lower
U.S. equity futures pointed to a softer finish to the week as markets digested a wave of influential technology earnings.
As of 02:59 ET, Dow futures were down 205 points, or 0.4%, S&P 500 futures slipped 13 points, or 0.2%, and Nasdaq 100 futures traded broadly flat.
Wall Street closed mixed on Thursday, with investors focused on results from artificial intelligence heavyweight Nvidia (NASDAQ:NVDA) and cloud software provider Salesforce (NYSE:CRM).
Although Nvidia delivered quarterly earnings above expectations, investors remained cautious amid growing competition, questions about the durability of strong demand, and uncertainty over when meaningful returns will materialize. Shares of Nvidia — a major index component — fell more than 5%.
Salesforce shares advanced despite issuing a weaker-than-anticipated annual revenue outlook. Analysts at Vital Knowledge described the results as “no worse than feared.”
The session also saw what analysts called a “violent rotation” within technology stocks, as capital shifted away from hardware-oriented names such as semiconductors and data center infrastructure toward software and data-focused companies.
According to analysts, “small red flags” from Nvidia alongside relief over results from Salesforce and peer Workday — combined with comments earlier this week from AI startup Anthropic about aiming to “compliment and augment, not kill” software companies — helped fuel the rotation.
Paramount leads Warner bidding battle
Paramount Skydance has emerged as the likely victor in the prolonged takeover struggle for Warner Bros. Discovery after Netflix unexpectedly stepped away from negotiations.
Netflix executives — whose shares rose in after-hours trading following the announcement — said the deal was “always a ’nice to have’ at the right price,” but “not a ’must have’ at any price.” While Netflix has the financial capacity to pursue acquisitions, some investors had questioned the strategic logic of buying a traditional media company.
Warner Bros.’ board determined Paramount’s $31-per-share all-cash proposal represented a superior offer, prompting Netflix to reconsider its position. After receiving four days to respond, Netflix opted not to match the bid and abandoned its $27.75-per-share proposal covering Warner Bros.’ studios and HBO Max.
The development positions Paramount — controlled by David Ellison, son of technology billionaire Larry Ellison — to build a larger entertainment group incorporating franchises such as “Harry Potter” and “Game of Thrones.” If approved by regulators, the transaction would also give Paramount control of cable networks including CNN and TBS.
Warner Bros. CEO David Zaslav said a Paramount transaction would “create tremendous value for our shareholders.” Paramount shares rose in extended trading, while Warner Bros. stock declined.
Anthropic clashes with Pentagon
Artificial intelligence company Anthropic said it would refuse Pentagon demands to remove safeguards embedded in its AI systems, creating tension between one of the sector’s leading startups and the U.S. government.
The dispute centers on a Pentagon request to eliminate protections that prevent the technology from being used for domestic surveillance or autonomous weapons applications.
The Defense Department has warned it could terminate its partnership with Anthropic and classify the firm as a “supply chain risk” if the company does not comply. Defense Secretary Pete Hegseth reportedly set a Friday deadline for Anthropic to allow the technology’s use in all lawful scenarios.
Anthropic CEO Dario Amodei said he could not agree “in good conscience,” arguing that the military’s request would effectively dismantle the system’s safety guardrails.
Block shares surge
Shares of Block jumped more than 23% in after-hours trading after the payments firm announced plans to cut nearly half of its workforce as part of a strategy to integrate artificial intelligence more deeply across its operations.
The reductions — expected to eliminate more than 4,000 positions — come as companies increasingly reshape staffing structures around AI adoption, raising broader concerns about employment impacts despite productivity gains.
Block CEO Jack Dorsey said that “[i]ntelligence tools have changed what it means to build and run a company,” adding “[w]e’re already seeing it internally” and “[a] significantly smaller team using the tools can do more and do it better[.]”
Although the company anticipates up to $500 million in restructuring costs, analysts cited by Reuters suggested the sharp share price rise reflects expectations that leaner staffing could improve profitability margins.
Oil edges higher after U.S.–Iran talks
Oil prices moved modestly higher but remained on track for weekly declines after the United States and Iran agreed to continue negotiations over Tehran’s nuclear program, easing fears of supply disruptions.
Brent crude futures gained 0.7% to $71.29 per barrel, while U.S. West Texas Intermediate futures rose 0.8% to $65.74 per barrel.
For the week, Brent prices were largely unchanged, while WTI was set to fall roughly 1%, reversing part of the prior week’s advance.
Talks between Washington and Tehran ended Thursday without a definitive agreement, but technical discussions are scheduled to resume next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said in a post on X following meetings in Geneva.
Geopolitical tensions involving Iran have been a key driver of oil price movements throughout February, as the United States increased its military presence in the Middle East and warned of potential action if negotiations failed.
Warner Brothers Discovery stock price