Stock Index Futures Steady After Tech-Led Selloff, U.S. ADP Jobs Report and Alphabet Earnings in Focus

Economic Outlook - U.S. rate futures indicate a 91.0% probability of no rate change and a 9.0% chance of a 25 basis point cut at the next FOMC meeting in March [1] - Richmond Fed President Tom Barkin noted that last year's rate cuts have supported the labor market while working to bring inflation back to target [2] - Fed Governor Stephen Miran suggested that the absence of strong price pressures indicates that interest rates should be lowered again this year, with expectations of more than a point of cuts over the year [2] Market Performance - Wall Street's major indexes ended lower, with significant declines in data services and software stocks following the release of an automation tool by AI firm Anthropic [4] - Notable stock movements included Thomson Reuters Corp. dropping over -15% and EPAM Systems falling more than -12% [4] - In contrast, Palantir Technologies rose over +6% after reporting strong Q4 results and issuing optimistic revenue guidance [4] Corporate Earnings - The fourth-quarter corporate earnings season is underway, with S&P 500 companies expected to report an average +8.4% increase in quarterly earnings compared to the previous year [7] - High-profile companies reporting include Alphabet, Eli Lilly, AbbVie, and Uber Technologies [7] Economic Data Releases - Investors are focused on the upcoming U.S. ADP private payrolls report, with economists forecasting a January Nonfarm Employment Change of 46K, up from December's 41K [8] - The U.S. ISM Non-Manufacturing PMI and S&P Global Services PMI are also anticipated, with expected values of 53.5 and 52.5 respectively [9] International Markets - The Euro Stoxx 50 Index saw a slight gain of +0.10%, driven by strength in energy and telecom stocks, while healthcare stocks faced declines [11] - Eurozone's January CPI rose +1.7% year-on-year, aligning with expectations, while the Core CPI rose +2.2%, slightly below the anticipated +2.3% [13] - Asian markets closed mixed, with China's Shanghai Composite Index up +0.85% and Japan's Nikkei 225 down -0.78% [14] Company-Specific News - Advanced Micro Devices (AMD) fell over -6% in pre-market trading due to underwhelming Q1 revenue guidance [19] - Enphase Energy (ENPH) surged over +22% after reporting better-than-expected Q4 results and strong Q1 guidance [19] - Nintendo's stock dropped nearly -11% after reiterating disappointing full-year guidance for Switch 2 sales [17]