US stock futures rose on Friday ahead of the inflation reading that is key to Federal Reserve policy, as investors weigh signs of a slowdown in the US economy and digest the fallout from the debate between Biden and Trump.
S&P 500 futures (ES=F) advanced about 0.4% after the index closed a step closer to a record high. Futures on the tech-heavy Nasdaq 100 (NQ=F) also rose 0.4%, while Dow Jones Industrial Average (YM=F) futures hovered above the flat line.
Indices are looking for a positive end to a turbulent week that saw the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) rebound from a three-day losing streak. While stocks are set to post a stellar first half of the year as they enter the final trading day of June, the volatility has raised concerns of a pullback for the rest of the year.
With the US election in November high on the risk list, investors have taken notice. President Joe Biden’s poor performance In his first debate with Donald Trump. The former president’s promised tax cuts and trade restrictions are likely to boost stocks. Trump Media and Technology Group (DJT) shares rose in premarket trading.
Friday’s highlight is the release of the May PCE price index, the Fed’s preferred measure of inflation. After a batch of data on Thursday revealed more cracks in economic growth, investors are anticipating a slowdown that could prompt the Federal Reserve to start cutting interest rates. The report is expected to show the smallest monthly rise in the core personal consumption expenditures index – which excludes food and energy prices – since November.
Meanwhile, the market is alert for more signs that consumer resilience is losing steam, with major companies citing pessimistic sales forecasts. Nike (NKE) stock is down nearly 15% in premarket trading, while Walgreens (WBA) shares remain under pressure in the wake of Thursday’s 22% slump.
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