Editor’s Note: This article has been updated to reflect Zscaler’s upwardly revised fiscal 2026 revenue guidance.

U.S. stock futures fell on Friday after a mixed close on Thursday. Futures of the major benchmark indices were negative.

The U.S. Bureau of Labor Statistics reported a 0.5% increase in the Producer Price Index for final demand in January, following a 0.4% advance in December. Despite a 0.3% decline in goods prices—largely driven by a 5.5% drop in gasoline—overall wholesale inflation was pushed higher by a significant 0.8% jump in services.

This report, which was delayed due to the late 2025 federal government shutdown, showed that the core index (less foods, energy, and trade services) rose 0.3%, marking its ninth consecutive monthly gain.

Meanwhile, the 10-year Treasury bond yielded 4.00%, and the two-year bond was at 3.42%. The CME Group's FedWatch tool‘s projections show markets pricing a 96.1% likelihood of the Federal Reserve leaving the current interest rates unchanged in March.

Index	Performance (+/-)
Dow Jones	-0.86%
S&P 500	-0.89%
Nasdaq 100	-0.72%
Russell 2000	-1.19%

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Friday. The SPY was down 0.75% at $684.15, while the QQQ declined 0.78% to $604.50.

Stocks In Focus

Netflix

• Netflix Inc. (NASDAQ:NFLX) was up 8.66% in premarket on Friday after it walked out of the bidding war against Warner Bros Discovery Inc. (NASDAQ:WBD), following a higher bid from Paramount Skydance Corp. (NASDAQ:PSKY), which also rose by 8.32%.

• NFLX had a weaker price trend in the medium and long terms but a strong trend in the short term, with a poor value ranking as per Benzinga's Edge Stock Rankings.

Block

• Block Inc. (NYSE:XYZ) surged 22.28% after reporting in-line earnings for the fourth quarter and announcing plans to reduce its workforce by more than 40%.

• Benzinga’s Edge Stock Rankings indicate that XYZ maintains a strong price trend over the short, medium, and long terms, with a solid growth score.

Zscaler

• Zscaler Inc. (NASDAQ:ZS) tumbled 8.62% as it raised its FY26 sales guidance and reported better-than-expected second-quarter financial results.

• ZS maintains a weak price trend over the short, medium, and long terms, as per Benzinga's Edge Stock Rankings.

Dell Technologies

• Dell Technologies Inc. (NYSE:DELL) jumped 12.64% after reporting better-than-expected fourth-quarter financial results and issuing FY27 guidance above estimates.

• Benzinga’s Edge Stock Rankings indicate that DELL maintains a strong price trend over the short and long terms but a weak trend in the medium term, with a moderate value score.

Rocket Lab

• Rocket Lab Corp. (NASDAQ:RKLB) declined 4.45% after it reported fourth-quarter results, and its losses remained broadly similar year on year.

• Benzinga’s Edge Stock Rankings indicate that RKLB maintains a weak price trend over the short term but a strong trend in the long and medium terms.

Cues From Last Session

Industrials and financial stocks bucked the overall market trend, closing the session higher, even as most S&P 500 sectors finished lower. Consumer discretionary, information technology, and communication services stocks recorded the biggest losses.

Index	Performance (+/-)	Value
Dow Jones	0.034%	49,499.20
S&P 500	-0.54%	6,908.86
Nasdaq Composite	-1.18%	22,878.38
Russell 2000	0.52%	2,677.29

Insights From Analysts

Global Equity Strategist Doug Beath of the Wells Fargo Investment Institute maintains a constructive outlook on the U.S. economy and stock market despite recent volatility. He observes a significant “rotation and broadening out” of equity markets, which he interprets as a positive indicator that “economic growth will accelerate this year.”

Beath anticipates heightened volatility throughout 2026, driven by midterm elections and a change in Federal Reserve leadership. He notes that market sensitivity to headlines has deepened, particularly within the information technology sector, due to shifting fears regarding artificial intelligence. However, he views these fluctuations as a “prelude to broad equity gains this year”.

Strategically, Beath suggests that investors should “stay nimble” and capitalize on market “chop” as an opportunity to deploy new cash into U.S. Large Cap Equities and the Financials sector.

Supporting this optimistic view is the fact that fourth-quarter earnings estimates for the S&P 500 have accelerated to approximately 13%, with small- and mid-cap indexes also exceeding expectations.

Upcoming Economic Data

Here's what investors will be keeping an eye on Friday.

• Final Demand PPI: The index for final demand rose 0.5% in January, bringing the unadjusted 12-month increase to 2.9%.

• Core Inflation: The “core” PPI, which excludes volatile food, energy, and trade services, increased by 0.3% in January.

• February’s Chicago Business Barometer (PMI) will be released by 9:45 a.m., and November and December’s delayed construction spending reports will be out by 10:00 a.m. ET.

Commodities, Crypto And Global Equity Markets

Crude oil futures were trading higher in the early New York session by 1.81% to hover around $66.40 per barrel.

Gold Spot US Dollar fell 0.13% to hover around $5,178.63 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.08% lower at the 97.7130 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.28% lower at $67,992.08 per coin.

Asian markets closed mixed on Friday, as Hong Kong's Hang Seng, Japan's Nikkei 225, and Australia's ASX 200 indices rose. Whereas, China’s CSI 300, South Korea's Kospi, and India’s Nifty 50 indices fell. European markets were mostly higher in early trade.

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