US stock futures showed positive movement on Friday morning as investors prepared for a significant batch of economic data, coming on the heels of a three-day winning streak for the Dow Jones Industrial Average and S&P 500. Futures contracts linked to the Dow rose by 0.2%, while S&P 500 futures climbed 0.3%. Additionally, gains for Nasdaq 100 futures were noted at 0.4%.
The oil market has captured attention due to a continued rise in contracts for both Brent crude and West Texas Intermediate. This increase comes amidst escalating tensions between the United States and Iran. President Trump has indicated he will make a decision within the next ten days on whether to pursue military action against Iran, as negotiations around its nuclear program continue.
On the economic front, investors are keenly awaiting the new reading of the Personal Consumption Expenditures (PCE) index. Analysts anticipate a year-over-year increase of 2.8% in the headline PCE, while core PCE, which excludes food and energy prices and is closely monitored by the Federal Reserve as a key measure of inflation, is expected to rise by 3%. Additionally, the preliminary reading of the fourth-quarter US GDP will provide further insights into economic performance.
The Federal Reserve’s stance on potential interest rate cuts remains mixed among officials. Although inflation has decreased from earlier highs, it still exceeds the central bank’s target of 2%. Minutes from the January meeting suggest a division among policymakers, with some advocating for clearer evidence of easing price pressures before supporting any further rate cuts, while others emphasize the need to maintain strength in the labor market.
Earnings reports are continuing to roll in, with notable companies like Nvidia and Dell set to announce their results next week. These reports may shed light on concerns surrounding an AI-related sell-off that some analysts have deemed “overblown.”
So far this week, the S&P 500 has gained 0.4%. The Nasdaq is on course to end a five-week losing streak with a 0.6% increase, while the Dow has seen a slight decline of about 0.2% during the same period.
In related market news, it has been reported that OpenAI and Nvidia are in final negotiations for a significant $30 billion investment, highlighting ongoing interest in the tech sector and its growth potential.
