US stock futures wavered Friday after a broad market sell-off as Wall Street digested a cooler-than-expected inflation reading that could influence Federal Reserve policy. S&P 500 futures (ES=F) and Dow Jones futures (YM=F) both hovered near the flatline, while Nasdaq 100 futures (NQ=F) showed little change following intense selling pressure on tech stocks the previous day.

Consumer prices rose 0.2% in January, below economists' expectations of 0.3%, with annual inflation at 2.4%. The core CPI, excluding volatile food and energy categories, matched forecasts at 2.5% year-over-year. The cooler inflation data shifted traders' outlook for rate cuts, now pricing in a 51% chance of at least one 25 basis-point cut by the Fed's June meeting, though expectations remain that rates will hold steady in March.

Tech stocks faced continued pressure as fears about AI disruption spilled into sectors like real estate, logistics, and transportation. All seven Magnificent Seven megacaps finished lower Thursday. However, Applied Materials shares surged over 10% after beating earnings expectations and providing an upbeat outlook that mirrored robust AI demand, while Pinterest shares tumbled about 20% as revenue fell short and analysts fretted about AI risks to its discovery platform.