US stocks trod water on Friday after a tech-driven sell-off, as investors awaited earnings reports from big Wall Street banks and inflation data that could test buoyant rate-cut hopes.

Futures on the S&P 500 (ES=F) were little changed, not far off the benchmark's recent record high. Contracts on the Dow Jones Industrial Average (YM=F) and the tech-heavy Nasdaq 100 (NQ=F) also traded broadly flat.

Stocks were stabilizing after the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) both snapped a seven-day win streak on Thursday, as optimism over lower interest rates drove an exodus from Big Tech stocks.

The wait is now on for big Wall Street banks to fire the starting gun on earnings season, with JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) on the docket Friday. Their second-quarter results could test the rally in big bank stocks, which have outperformed the broader market.

Meanwhile, the market is weighing the shift from this year's winners Nvidia (NVDA) and the "Magnificent 7" techs — which just booked their worst day in almost a year — to the likes of utilities and real estate stocks.

Thursday's rotation out of techs came as investors took June's surprisingly mild consumer inflation print as reason for the Federal Reserve to cut rates. The market is almost fully pricing in a reduction in September, and bets are growing on a second cut in December, according to the CME FedWatch tool.

Now the debate has shifted from whether the Fed will act to how often and how deep, with some on Wall Street calling for rates to drop by as much as 0.75% by the end of the year. Given that, investors will keep a watchful eye on the Producer Price Index for June later Friday for confirmation of an easing in price pressures.