U.S. stock futures gained ground on Friday morning as investors prepared for a significant series of economic data releases following a three-day winning streak for the Dow and S&P 500. Contracts linked to the Dow Jones Industrial Average increased by 0.1%, while S&P 500 futures climbed approximately 0.3%. Gains were also seen in Nasdaq 100 futures, which rose by 0.3%.
Market focus shifted to oil, as Brent crude and West Texas Intermediate (WTI) futures continued their upward trajectory amid escalating tensions between the United States and Iran. President Trump indicated that he would make a decision within ten days on whether to engage in military action against Iran as he seeks a resolution concerning the nation’s nuclear program.
On the economic front, investors were keenly awaiting the latest figures from the Personal Consumption Expenditures (PCE) index. Analysts expect the headline PCE to show a year-over-year rise of 2.8%, while the core PCE, which excludes food and energy and serves as the Federal Reserve’s preferred measure of inflation, is anticipated to rise by 3% over the same period. Additionally, the first reading of the fourth-quarter U.S. GDP will be released.
The outlook for interest rate cuts remains uncertain, as Federal Reserve officials express divergent views on the future course of monetary policy. While inflation has decreased from its peak, it still surpasses the central bank’s 2% target. Minutes from the January Federal Reserve meeting reveal that some policymakers are advocating for clearer indications that price pressures are subsiding before supporting further rate cuts, whereas others emphasize the necessity of maintaining a strong labor market.
The earnings season is still underway, with major companies having reported this week. Noteworthy reports from Nvidia and Dell are scheduled for next week, which could shed light on the extent of the recent sell-off in AI-related stocks that some analysts deem “overblown.”
So far this week, the S&P 500 is up by 0.4%, with the Nasdaq poised to break a five-week losing streak with a 0.6% increase. Conversely, the Dow has experienced a slight decline of about 0.2% during the same timeframe.
