OPENING CALL

U.S. shares appeared poised to end the week on a high, with sentiment rebounding somewhat from Thursday's lower close.

Despite the gains in futures Friday, the Nasdaq was on track for its sharpest decline since President Trump's "Liberation Day" tariffs, the S&P 500 was down 2%, while the Dow was flat on the week.

The moves come amid lingering concerns about the scale of artificial-intelligence spending, and the degree of disruption created by AI startups.

Highlighting the issue was Amazon, whose shares slipped overnight spurred by it disclosing a nearly 60% increase in AI-related spending this year.

"The market says no, this is too much spending," Swissquote said .

This added to worries about the health of the U.S. labor market and investors will likely closely watch Wednesday's nonfarm payrolls data .

Meanwhile, officials from Iran and the U.S. meet in Oman for talks hoping to avert a new conflict in the Middle East as the U.S. builds up forces there.

President Trump on Thursday said that he wanted a new strategic-arms treaty with Russia after the lapse of the last major nuclear pact with the country.

Also, Saudi Arabia cut the price of crude for Asian buyers for the fourth consecutive month.

Stocks to Watch

Molina Healthcare shares fell 27% after it forecast a drop in profit, and said it would exit a product in 2027.

Roblox stock was 16% up after the company guided for higher revenue this year.

Stellantis shares fell 22% in New York after it said it would book charges of about $26 billion related to significantly reduced electric-vehicle expectations.

Strategy, Coinbase Global, Robinhood Markets shares rose 6.9%, 6.1% and 5.4% respectively on the back of a rebound in bitcoin.

Watch For:

University of Michigan Preliminary Consumer Confidence Survey, Canada Labour Force Survey, Fed Vice Chair Philip Jefferson Speaks at the Brookings Institution in Washington, D.C.

Today's Top Headlines/Must Reads:

- The Week Anthropic Tanked the Market and Pulled Ahead of Its Rivals

- 'Ignore It.' How the Elite Consoled Jeffrey Epstein Over His Crimes.

- The Car Industry Is Racing to Replace Chinese Code

MARKET WRAPS

Forex:

The dollar traded flat against a basket of currencies after reaching a two-week high on Thursday as investors shrugged off weak U.S. jobs data. U.S. job openings fell to the lowest level in more than five years in December, the Labor Department said Thursday.

The euro rose against the dollar after European Central Bank President Christine Lagarde made it reasonably clear the ECB wouldn't cut interest rates in response to the currency's strength, ING said, adding that the euro could rise further if European investors pare back dollar exposure.

Sterling rose slightly against the dollar and against the euro, but it could extend recent declines on concerns about a leadership challenge for U.K. Prime Minister Keir Starmer, ING said.

Bitcoin recovered slightly but remained below $70,000 after reaching its lowest level since October 2024 overnight.

"A number of retail investors buying cryptocurrencies are also likely long tech as both were favored among retail investors," Jefferies said.

Bonds:

The 10-year Treasury yield fell, so too did the 30-year yield. Ten-year Treasury yields near 4.50% and 30-year Treasury yields above 5% may attract buyers, while short-dated bonds could look attractive at 3.75%, according to BlueBay Asset Management .

The fall comes on fresh signs of labor market weakness in the U.S., keeping the door open to a rate cut potentially sooner than expected , Pantheon Macroeconomics said.

"December's JOLTS report suggests the Committee is premature in its judgment that the labor market has turned a corner."

SEB feels investors should take the rise in Treasury yields since December with a pinch of caution, saying it has been accompanied by a notable increase in term premium.

SEB still expects the 10-year Treasury yield to retrace most of its mid--January gains as the Federal Reserve outlook softens.

Energy:

Oil prices edged higher in early trading but were on track for their first weekly decline in several weeks with markets focusing on upcoming talks between the U.S. and Iran.

Metals:

Gold was headed for a weekly gain of 3% while silver fell.

"Until volatility subsides and price discovery improves, gold, and especially silver is likely to trade violently in both directions," Saxo Bank said. 


   TODAY'S TOP HEADLINES

Toyota CEO to Step Down as Carmaker Navigates Trump Tariffs

Toyota Motor's chief executive is stepping down after a relatively short term in office that was buffeted by President Trump's tariffs and struggles to maintain market share in China.

Toyota, the world's largest carmaker, said Koji Sato, 56 years old, would take a new role as vice chairman and focus on his work at industry groups. Chief Financial Officer Kenta Kon, 57, will be promoted to CEO, effective April 1.

Orsted Backs Guidance Despite Hit From U.S. Disruption

Orsted backed earnings guidance that covers the next two years despite hefty impairments and tariff costs hitting the company's bottom line in 2025.

The Danish renewable-energy company has grappled with regulatory challenges in the U.S. where it has faced fresh tariffs on goods imported to the country and a U.S. administration that is opposed to wind energy.

Inside Elon Musk's $1.25 Trillion AI and Space Megamerger

Elon Musk took a gulp of water on stage at the World Economic Forum in Switzerland last month and started talking up one of his latest passions: data centers orbiting Earth.

"The lowest-cost place to put AI will be space," Musk said. "That will be true within two years, maybe three."

The Software Rout Is Spreading Pain to the Debt Markets

The steep selloff in software stocks is spreading to the debt market.

Pressured by growing worries about the disruptive potential of new AI coding tools, shares of large software companies such as Salesforce and ServiceNow have been sliding for months. But now the prices of software-company bonds and loans are also dropping.

German Industrial Production Declined at End of 2025

Germany's industrial output fell more sharply than expected in December, ending three straight months of growth, a reflection of the fragility of the sector's expected rebound.

Industrial production declined 1.9% on month in December, after a downwardly revised 0.2% rise in November, Germany's statistics agency Destatis said Friday. A consensus of economists polled last week by The Wall Street Journal expected a softer 0.2% decline.

Atlanta Fed's Bostic Makes the Case for Keeping Interest Rates Steady

It appears most Federal Reserve officials remain committed to keeping interest rates steady in the near term, including Atlanta Fed President Raphael Bostic.

On Thursday, Bostic was the latest policymaker to stress the importance of keeping the central bank's benchmark interest rate unchanged to help bring inflation sustainably down to the Fed's goal of 2%.

A Second Wave of Popular Anger Is Building in Iran

A new wave of popular anger is rising in Iran, as people enraged by last month's mass killings of protesters vent their antipathy for the regime despite the risks of a continuing crackdown.

Mourning families are shouting antiregime slogans at funerals and memorials. Students are refusing to sing patriotic songs at school. Medical workers are publicly condemning the arrests of colleagues who treated people injured in the protests. And groups of local activists are openly calling for the fall of Supreme Leader Ali Khamenei.

U.S. to Allow Aid to North Korea to Resume, While Outreach Stalls

The Trump administration plans to approve international aid deliveries to North Korea, opening the door for humanitarian assistance after a monthslong freeze during which dictator Kim Jong Un deepened ties to Russia and China.

All humanitarian aid to North Korea requires special permission from a United Nations sanctions committee, where the U.S. has frozen approvals for months because of concerns about the diversion of aid supplies. The U.S. will now release any holds on sanctions exemptions, according to people familiar with the matter, paving the way for international assistance.

Three Takeaways From the Ukraine Peace Talks

U.S., Russian and Ukrainian negotiators have come away from two days of talks in Abu Dhabi with what appeared to be only modest progress in making a deal to end the war in Ukraine, and hardly any at all on the most difficult topic: the amount of territory Moscow and Kyiv should control in the eastern Donbas area.

Russian state media reported Kremlin spokesman Dmitry Peskov as saying it was too early to assess the outcome of the discussions, which began earlier this week. The U.S.'s special envoy, Steve Witkoff, said he anticipated more progress in the coming weeks.

Cuba Says It Is Ready to Engage With Trump as Fuel Shortages Worsen

Cuba's President Miguel Díaz-Canel said his government is willing to engage with the Trump administration after the U.S. threatened to impose trade sanctions on countries shipping much-needed oil to the Communist island.

Díaz-Canel said at a hastily convened news conference on Thursday that any dialogue should come without prior conditions, and as equals, respecting Cuba's sovereignty.

Write to pierre.bertrand@wsj.com

TODAY IN CANADA

Earnings:

Canopy Growth Corporation 3Q

Economic Indicators (ET):

0830 Labour Force Survey for January

Stocks to Watch:

DPM Metals Extends Chelopech Mine Life to 10 Years; Chelopech Mine Proven and Probable Mineral Reserves Increased to 23.2 Million Tons

(MORE TO FOLLOW) Dow Jones Newswires

02-06-26 0626ET