Global shares slip ahead of US inflation data, tech worries simmer

Global shares slipped on Friday ahead of key U.S. inflation data, easing from record highs as concerns over shrinking margins at major tech companies and worries about AI‑driven disruption lingered after a week of selling.

U.S. futures are flashing red with S&P 500 E-minis off 0.3% and Nasdaq 100 E-minis down 0.2%, set to deepen Thursday's losses when the tech-heavy Nasdaq Composite posted its biggest daily drop in three weeks, tumbling 2%.

The MSCI all-country index slipped 0.3%, with similar losses in Europe.

Jitters around spending by big tech on AI have dragged on stocks this week, while recent selloffs in sectors from software to wealth managers have centred on fears AI will disrupt business models.

Against a more stable market backdrop on Friday, market watchers pointed to a broader rotation towards more defensive parts of the market and a refocus on macroeconomics ahead of Friday's U.S. consumer inflation data.

"Markets have had a healthy correction, they've skimmed some of the froth," Arun Sai, senior multi-asset strategist at Pictet Asset Management, said. He noted that more speculative areas of the market like meme stocks, high retail sentiment stocks, crypto and non-profitable tech had taken a hit.

"The focus goes back to macro. We had a strong labour market print. If we get a reasonable inflation print today, that would then go back to my narrative that global macro isn't in a bad place," he said.

Ahead of the CPI numbers, precious metals rebounded slightly from Thursday's heavy losses, with gold up 1.1% to $4,973.66 an ounce, after losing over 3% on Thursday, while silver climbed 3.2%, having plunged 10% overnight.

But turbulence from AI-related worries remains in focus.

"It is clear that investors are viewing developments in AI and AGI through a new lens, attempting to price a future that feels more uncertain and structurally disruptive than before," said Chris Weston, head of research at Pepperstone.

Elsewhere, The Financial Times reported on Friday that U.S. President Donald Trump plans to scale back some tariffs on steel and aluminium goods, citing people familiar with the matter.

U.S. Treasury Secretary Scott Bessent said on Friday that any decision to narrow the scope of U.S. metals tariffs would be made by Trump.

TRADERS AWAIT U.S. INFLATION TEST 

The yield on benchmark 10-year U.S. Treasuries was flat at 4.1% after falling 7 basis points overnight, its biggest drop since October 10.

Fed funds futures also rallied to reverse most of the losses after the payrolls data that led markets to pare back the chance of a rate cut in June. A move in June is now back in play, with the chance priced at around 70%, and a total easing of 60 basis points expected this year.

Much attention will be on the U.S. inflation data due later in the day. Forecasts are centred on a monthly rise of 0.3% in the core measure, which would be enough to see the annual rate slow to 2.5% from 2.7% previously. 

"Even an in-line result would reflect a meaningful deceleration from December and that could bolster animal spirits and spark energy back into the cyclical trade," Jose Torres, a senior economist at Interactive Brokers, said.

Currency markets were stable ahead of the inflation report, with the euro down 0.1% against the dollar to $1.186. The yen shed 0.4% against the dollar to trade at 153.33, but remained on track for its strongest weekly gain in more than a year after Japanese Prime Minister Sanae Takaichi's historic election win last weekend.

The risk-sensitive Australian dollar took a step back, slipping 0.5% to $0.705, but was still headed for a weekly rise of almost 1%. 

Oil prices fell further, after a 3% slide on Thursday. U.S. West Texas Intermediate crude was down 0.7% to $62.41 a barrel, while Brent crude futures fell 0.4% to $67.19.

OPEC+ is leaning towards resuming increases in oil output from April, three OPEC+ sources said, as the group prepares for peak summer demand and price strength is bolstered by tensions over U.S.-Iran relations.

(Editing by Kim Coghill, Amanda Cooper and Mark Potter)