WTI: Traders Maintain Strong Long Positions Ahead of Weekend Production Decision

Indices: Tech Drags as Futures Edge Lower Before PPI

U.S. equity futures slip slightly after a weak session led by semiconductor losses. The tech-heavy Nasdaq 100 (-1.2% to 25,034) paced declines, followed by the S&P 500 (-0.5% to 6,908), while the Dow 30 (flat at 49,499) avoided closing in the red. Treasury yields eased across the curve, with the 10-year hovering near the 4% threshold, as investors await January PPI data. CME FedWatch pricing still points to rate cuts in July and October as the base case.

Stocks: Chip Selloff; Media Takeover Saga Nears Conclusion

• Nvidia (-5.5%) slid despite beating earnings and revenue expectations, dragging the broader semiconductor space lower, including AMD (-3.4%), Intel (-3%), and ASML (-4.1%).
• The contest for Warner Bros Discovery (-1.7% AH) appears to be wrapping up, with Netflix (+8.5% extended) stepping aside after Paramount Skydance (+10% close; +6.2% AH) presented a stronger bid.
• Block (+23.6%) surged in extended trading after earnings and announcing plans to cut over 4,000 jobs.
• IonQ (+21.7%) rallied on upbeat revenue guidance, with Morgan Stanley lifting its price target.
• Meta (-0.7% AH) dipped after reports its in-house chip project faced hurdles and that it struck a deal to lease Google TPUs for AI development.
• PayPal (-3.7%) declined after denying talks of a potential sale.
• Meme stock movers included Beyond Meat (+2.9%), GoPro (+3.3%), Krispy Kreme (+27.8%), Opendoor (+8.6%), and BlackBerry (+2.6%).

Earnings Highlights:

• Dell Technologies beat on both earnings and revenue; shares rose 11.6% after hours.
• Zscaler missed on deferred revenue and billings; shares fell 9.5% AH.
• Synopsys disappointed with full-year guidance; shares dropped 5.2%.
• CoreWeave topped revenue slightly but issued weak guidance; shares sank 8.8%.
• Rolls-Royce beat expectations, raised its profit outlook, and announced £2.5bn in buybacks; shares closed up 5.2%.
• Baidu missed revenue forecasts; shares slid 5.7%.

Commodities:

• Gold volatility eased as prices hovered near $5,200 but failed to sustain gains above that level, amid geopolitical uncertainty and a firmer dollar. Silver reclaimed $90, narrowing the gold/silver ratio below 58. The World Gold Council flagged stretched valuations.
• WTI crude steadied around $65 after elevated intraday swings, with attention on Geneva talks and lingering U.S. military rhetoric. Traders are also focused on Sunday’s OPEC+ meeting amid speculation of a possible April output increase.

FX / Central Banks / Crypto:

• Bitcoin retreated toward $68K, while Ether remained above $2K.
• The U.S. Dollar Index firmed back into the 97 area, reversing prior losses on stronger labor data and reduced expectations for near-term Fed easing.
• Fed officials offered mixed signals: Miran backed four quarter-point cuts this year, while Goolsbee cautioned against easing too quickly before inflation cools.
• ECB President Lagarde reiterated inflation is expected to return to the 2% target over the medium term, emphasizing a data-dependent approach and monitoring — not targeting — FX markets.

Data: Stronger-Than-Expected Labor Figures

• U.S. initial jobless claims came in at 212K (vs. 217K forecast), with continuing claims falling to 1.833m. Kansas Fed manufacturing improved sharply to 10 from -2.
• Tokyo headline CPI rose to 1.6% y/y, though core measures eased. Retail sales rebounded 1.8% y/y, while industrial production disappointed at 2.2% growth (vs. 5.3% expected).

Ahead:

• U.S. PPI, Chicago PMI, and Baker Hughes rig count data due later today.
• In Europe, German preliminary CPI, import prices, and labor data.
• Saturday: Earnings from Berkshire Hathaway.
• Sunday: OPEC+ meeting to determine April output levels.

Sources: Monte Safieddine