U.S. stock futures climbed on Friday ahead of a pivotal inflation report that could shape Federal Reserve policy, amidst considerations of a slowing American economy and fallout from the Biden-Trump debate.
S&P 500 futures (ES=F) rose approximately 0.4% following a close near its record high. Nasdaq 100 contracts (NQ=F) also gained 0.4%, while Dow Jones Industrial Average futures (YM=F) held steady.
The indices aimed for a positive finish to a volatile week where the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) rebounded from a three-day decline. Despite strong performance in the first half of the year, concerns linger over potential market corrections in the second half.
Against the backdrop of the upcoming U.S. election, investors reacted to President Joe Biden’s lackluster performance in his initial debate with presumptive Republican nominee Donald Trump. Expectations of tax cuts and trade policies under Trump spurred pre-market gains for Trump Media & Technology Group (DJT).
Friday’s highlight is the release of May’s Personal Consumption Expenditures price index, crucial for Fed inflation assessments. Following recent economic data indicating vulnerabilities, market watchers anticipate a possible cooling that might prompt Fed interest rate adjustments. Projections suggest the core PCE, excluding volatile food and energy prices, will show its slowest monthly increase since November.
Simultaneously, attention remains fixed on signs of weakening consumer resilience, with Nike (NKE) shares plummeting nearly 15% in pre-market trading and Walgreens (WBA) facing continued pressure after a 22% decline on Thursday.
