CPI report, AI disruption sell-off, EPA rollback and more in Morning Squawk

Happy Friday. Remember that Ring Super Bowl commercial, the one about finding the lost dog? Turns out it didn’t quite have the effect the Amazon-owned doorbell company was hoping for.

Stock futures are down this morning, following a negative session for all three major averages.

Here are five key things investors need to know to start the trading day:

Stocks fell on Thursday as traders continued to rotate out of the sectors they see as most exposed to disruption from artificial intelligence. The Dow Jones Industrial Average ended yesterday’s session down more than 600 points, or 1.34%, while the S&P 500 shed 1.57%.

Here’s what happened:

• Fears surrounding what new AI tools mean for specific industries continue to rock the market.
• AI anxiety first hit software and financial stocks, but yesterday it came for office real estate stocks and several trucking and logistics names.
• Investors worried that AI could lead companies to need less office space, and a newly released AI tool that can scale freight volumes without increasing headcount sent jitters through the trucking industry.
• Several tech names also took a beating in Thursday’s session. Shares of Cisco plunged 12% for the worst day since 2022 as rising memory prices weighed on the company’s margins.
• Apple shed 5%, its biggest one-day slide since last April, following reports that its Siri update could be delayed. The company’s news app is also facing Federal Trade Commission scrutiny.
• Meanwhile, Treasury yields moved lower yesterday after the National Association of Realtors reported that January saw the biggest monthly drop in home sales since February 2022.

The Bureau of Labor Statistics this morning will release January’s consumer price index, which — like Wednesday’s jobs report — was delayed by the recent government shutdown.

Investors are eager to see whether that’s all the report will have in common with this week’s labor data, or whether the CPI will bring more good news about the U.S. economy. Economists are expecting a 2.5% year-over-year increase, according to the Dow Jones consensus forecast. If the CPI is in line with those expectations, it would bring the inflation gauge back to where it stood in May 2025.

Stock futures are lower before the bell heading into the report, which is due out at 8:30 a.m. ET. Follow live market updates here.

Shares of Pinterest plunged more than 20% in extended trading after the social media company missed Wall Street’s earnings and revenue expectations for its fourth quarter.

Pinterest CEO Bill Ready chalked up the disappointing quarter to President Donald Trump’s tariffs, which weighed on retail advertisers. The company also issued weaker-than-expected guidance for the current period, with CFO Julia Donnelly telling analysts on Thursday that Pinterest expects “these headwinds will continue and may become slightly more pronounced in Q1.”

Instacart, on the other hand, reported strong revenue for its most recent period and issued an optimistic forecast for its first quarter. Shares of the grocery delivery platform are up 13% before the bell.

The Trump administration on Thursday revoked a landmark finding that classified six greenhouse gases — including carbon dioxide and methane — as threats to public health and welfare. The Environmental Protection Agency’s so-called endangerment finding underpinned federal emissions regulations.

Its reversal is a massive blow to efforts to combat climate change. Experts say it will likely worsen the long-term effects of climate change, which include more extreme weather events. And while the EPA says the move could save the average person about $2,400 per vehicle, more wildfires, floods, droughts and hurricanes could drive up other costs for consumers.

Three National Basketball Association teams saw their valuations hit $10 billion during the 2024-2025 season, according to CNBC’s 2026 Official NBA Team Valuations.

The Golden State Warriors, New York Knicks and Los Angeles Lakers took the one, two and three spots with valuations of $10.8 billion, $10.1 billion and $10 billion, respectively. On average, the league’s 30 teams brought in $416 million in revenue, putting their average valuation at $5.52 billion — an 18% jump from last year’s average value.

See the full rankings here.

Here’s what to catch up on over the long weekend:

— CNBC’s Sean Conlon, Sarah Min, Michelle Fox, Pia Singh, Lola Murti, Jennifer Elias, Diana Olick, Jeff Cox, Jonathan Vanian, Samantha Subin, Spencer Kimball, Greg Iacurci, Michael Ozanian and Annie Palmer contributed to this report. Melodie Warner edited this edition.