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

• AI anxiety expanded to new sectors: real estate stocks fell on concerns about reduced office space needs, while trucking companies dropped after a new AI tool demonstrated freight scaling without additional headcount
• Pinterest plunged over 20% after hours on weak Q4 results and guidance, with CEO citing Trump tariffs as weighing on retail advertisers
• EPA reversed its endangerment finding classifying six greenhouse gases (including CO2 and methane) as public health threats, eliminating the foundation for federal emissions regulations

Market Summary: AI Disruption Continues, CPI Report Awaited

Market Performance

U.S. stock futures declined Friday following Thursday's broad sell-off, with the Dow Jones dropping over 600 points (-1.34%) and another major index falling 1.57%. Markets faced continued pressure from AI-disruption fears spreading beyond initial sectors.

AI Impact Expands

Artificial intelligence concerns broadened from software and financial stocks to new industries:

• Real estate sector hit on fears AI could reduce office space demand
• Trucking industry rattled by new AI freight-scaling tools that reduce headcount needs
• Cisco plunged 12% (worst day) as rising memory prices compressed margins
• Apple fell 5% (worst week) on reports of delayed Siri updates and FTC scrutiny of its news app

Key Economic Data

The CPI report releases Friday at 8:30 AM ET, delayed by the government shutdown. Economists forecast a 2.5% year-over-year increase, matching May 2025 levels. Treasury yields declined Thursday after January home sales hit their biggest drop since February 2022.

Corporate News

Pinterest plummeted 20%+ in after-hours trading, missing Q4 estimates and issuing weak Q1 guidance. CEO Bill Ready blamed Trump tariffs for weighing on retail advertisers, with CFO warning headwinds "may become slightly more pronounced."

Policy Changes

The Trump administration reversed EPA's endangerment finding, declassifying six greenhouse gases (including CO2 and methane) as public health threats. While potentially saving consumers $2,400 per vehicle, experts warn of increased extreme weather costs.

Sports Business

Three NBA teams—Golden State Warriors ($10.8B), New York Knicks ($10.1B), and Los Angeles Lakers ($10B)—reached $10 billion valuations. League average valuation jumped 18% to $5.52 billion.