U.S.-Iran talks in Switzerland loom large as markets brace for potential geopolitical shifts, with investors rotating out of tech into defensive stocks amid concerns about AI advancements' impact on corporate spending. Futures hover near flatline as key economic indicators approach, with the Dow down 26 points and Nasdaq futures falling 99 points.

Brent crude fell 0.7% to $68.13 ahead of negotiations between the U.S. and Iran, while gold dropped 1.4% to $4,919.72/oz. Markets parse January's consumer price data showing more cooling than anticipated, bolstering bets on earlier Fed rate cuts. The tech-focused Nasdaq slid 0.2% while the S&P 500 and Dow advanced.

Palo Alto Networks prepares to report earnings after the bell, following its $3.35 billion acquisition of Chronosphere and plans to integrate it into its Cortex AgentiX platform. Japan's GDP grew just 0.2% annualized in Q4, far below forecasts of 1.6%, highlighting challenges for Prime Minister Takaichi's new administration amid ongoing cost-of-living pressures.