US stock futures dip ahead of key January CPI data showing inflation slowing but remaining above the Fed's 2% target. Markets grapple with AI disruption fears that have pressured tech stocks, with Cisco plunging 12.3% after weak gross margins. Transport stocks also fell on concerns about AI-driven efficiency improvements in freight shipping.

Against this backdrop, Arista Networks and Applied Materials defied the broader market slump with stronger-than-expected quarterly results. Arista's $2.49 billion revenue and $0.82 profit topped estimates, while Applied forecast $7.65 billion in second-quarter sales, significantly ahead of Wall Street's $7.01 billion projection.

Gold prices rose 1.2% to $4,979.75 per ounce, benefiting from safe-haven demand amid Middle East tensions and rate uncertainty. The precious metal recovered after a 3% drop in the previous session. Investors await the CPI report for direction on Federal Reserve interest rate policy, with no additional cuts expected until at least late 2026.