The technology index NASDAQ 100 has already fallen more than 10% since the end of January. Concerns about maintaining the pace and scale of gains among companies involved in AI, or under pressure from it, have intensified in response to the conflict in the Persian Gulf. Friday’s session is starting with significant declines, with futures on the major indices down more than 1%. The biggest losses are seen in the Russell 2000, where declines are already approaching 2%.
The market is focused mainly on a growing number of negative signals from technology companies, as well as on diminishing prospects for de-escalation of the conflict in the Persian Gulf. The situation is being exacerbated by increasing uncertainty around the inflation outlook and central bank policy.
Macroeconomic data:
The University of Michigan has released its latest data on inflation expectations and consumer sentiment.
- Inflation expectations (1 year): 3.8% (expected: 3.4%; previous: 3.4%)
- Inflation expectations (5 years): 3.2% (expected: 3.2%; previous: 3.3%)
- Consumer expectations: 51.7 (expected: 54.1; previous: 56.6)
- Current conditions: 55.8 (expected: 57.8; previous: 56.6)
The data clearly show an accelerated decline in consumer sentiment. Short-term inflation expectations have also risen significantly.
US100 (D1)
Buyers appear to be losing momentum completely. Price has sharply broken below the EMA200, which is a very strong bearish signal. The EMA50 has also crossed below the EMA100, reinforcing the bearish momentum signal. At present, the price seems to be struggling to hold the 78.6 Fibonacci level; however, a break below this level may only be a matter of time. Source: xStation5
Company news:
- Carnival Corp (CCL.US): The cruise operator lowered its 2026 profit forecast, citing increased cost pressure from fuel. Shares are down more than 3%.
- Meta (META.US): Valuations of the social media platform operator are collapsing. In Thursday’s session, the stock lost nearly 10%, and today it is extending losses by another 2%. This follows a defeat in a court battle in which the company was found guilty of creating products harmful to young people, setting a dangerous precedent for the firm. In addition, the company is expected to implement significant job cuts.
- Microsoft (MSFT.US): One of the leaders of the U.S. technology sector announced a hiring freeze in cloud solutions and in sales. The stock is down nearly 3%.
- Palo Alto (PANW.US): Cybersecurity stocks are falling amid concerns about AI’s impact on business models. Additional pressure on SaaS stocks and broader macroeconomic uncertainty are pushing the company’s shares down 7% in today’s session.
- Entergy Corporation (ETR.US): The U.S. energy provider is up more than 4% after announcing an agreement with Meta. The company is set to supply power to a mega data center in Louisiana.
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