Show Notes
U.S. stock futures are mixed after a sharp software-driven selloff, as renewed concern over AI disruption weighs on sentiment. Investors are watching big tech earnings after the close and parsing whether the AI trade is recalibrating rather than breaking. Crypto weakness and cautious forward guidance are adding to the defensive tone.
Software stocks slid as fears grew that generative AI could displace enterprise tools, despite pushback from Nvidia leadership. The move reflects valuation sensitivity more than a single catalyst, with investors reassessing near-term monetization timelines across AI-linked names.
Earnings are driving dispersion. Advanced Micro Devices (AMD) topped Q4 estimates but guided conservatively, highlighting heavy AI investment costs and limited China visibility. In contrast, Eli Lilly (LLY) surged after projecting up to 27% sales growth on obesity drugs, while Uber (UBER) and Chipotle (CMG) flagged softer near-term trends.
Trending tickers: AMD under pressure on guidance, LLY jumps on blockbuster demand, CMG slides as comps stall.
Takeaways:
AI enthusiasm is colliding with valuation discipline.
Earnings guidance matters more than beats.
Drugmakers are outperforming tech on growth visibility.
Market leadership is broadening beyond mega-cap software.
Volatility likely persists through peak earnings.
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