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Futures: Dow 0.2%, S&P 500 0.08%, Nasdaq flat

Feb 13 (Reuters) - U.S. stock index futures were trading

flat on Friday after an AI-led selloff, with investors staying

on the sidelines ahead of inflation ​data that could provide more

clarity on the Federal Reserve's rate-cut ‌outlook.

All the three indexes were headed for their worst week since

November as AI-related worries rippled beyond software stocks to

sectors such as brokerages and ⁠trucking.

The Consumer Price Index report for January is due at

8:30 a.m. ET and is likely to ⁠show

prices

rising at a steady pace. The data lands two days after a

stronger-than-expected ‌jobs report heightened concerns ‌that the

Fed could keep interest rates on hold longer.

Even so, Fed fund futures reversed most losses, with

markets pricing a 70% chance of ​a June rate cut and a total 60

basis points ‌of easing this year.

At 05:36 a.m. ET, Dow E-minis fell 103 points, or

0.21%, S&P 500 E-minis were down 6 points, or 0.09%, and

Nasdaq 100 E-minis lost 9.25 points, ​or 0.04%.

The S&P 500 and the Dow had ​dropped more than ‌1% on

Thursday, while the tech-heavy Nasdaq tumbled 2%.

Shares of Applied Materials ( AMAT ) jumped 11.5% in

premarket trading after the chipmaking-equipment maker forecast

second-quarter revenue and profit above Wall Street

expectations.

Peers Lam Research ( LRCX ) and KLA ⁠Corp gained

1.3% and 1.8%, respectively.

With earnings season more than halfway through, AI capex

outlays are a ⁠dominant theme for the "Magnificent Seven"

companies, whose cumulative investments are projected to reach

about $650 billion. Investors are now demanding real payoffs as

they continue to punish sectors they fear could be squeezed by

growing competition.

"The central question for equity investors is whether

today's surge in capex can translate into durable earnings

growth sufficient to justify higher leverage and ⁠stretched

valuations," BNY's ‌head of markets macro strategy, Bob Savage,

said in a note.

"Markets are signaling ‌conditional support: Credit flows

remain robust and rates are easing at the margin, but equity

momentum is no longer ⁠automatic."

Chip leader Nvidia's ( NVDA ) earnings later this month will

be the next big test for the AI trade.

On Friday, networking equipment provider Arista Networks ( ANET )

gained 11% after forecasting annual revenue above

expectations.

While most software names were steady, AppLovin ( APP )

inched lower in premarket trading after logging its biggest

one-day decline since March in the previous session, swept up in

the AI-linked selloff. Shares of the marketing platform had

fallen almost 10% in the prior session and are down 45% for the

year.

On the trade front, the ​United States and Taiwan signed a

final reciprocal agreement that confirmed a 15% levy for imports

from Taiwan, while committing to eliminate or lower tariffs on

nearly all U.S. goods.

U.S. President Donald Trump plans to scale back some ​tariffs

on steel and aluminum goods, according to ‌the Financial Times,

which cited people familiar with the matter.