Futures tied to major U.S. stock indices were relatively unchanged Thursday evening as traders braced for significant economic updates planned for Friday. In early indications, Dow Jones Industrial Average futures showed a modest increase of 63 points, equivalent to 0.1%. Similarly, S&P 500 futures rose by 0.1%, whereas Nasdaq 100 futures remained stable.
On the horizon for investors are two crucial events. First, a pivotal ruling from the U.S. Supreme Court on the legality of tariffs imposed by former President Donald Trump, which has raised significant apprehension in the market regarding trade policy and the overall fiscal climate of the nation. Ohsung Kwon, chief equity strategist at Wells Fargo, emphasized on CNBC’s “Power Lunch” that many companies are adopting a cautious approach, choosing to delay restocking until there is clarity on the tariff situation. He expressed optimism that a favorable ruling could reinvigorate the manufacturing sector.
The second major catalyst to watch for is the December jobs report, expected to unveil a modest uptick in nonfarm payrolls by approximately 73,000 jobs. Economists anticipate that the unemployment rate will see a slight decrease, projected to fall to 4.5%.
In addition, market participants are keenly observing developments related to Trump’s recent directive urging his representatives to invest $200 billion in mortgage-backed securities, a strategy he claims would lower both interest rates and monthly mortgage payments.
In regular trading hours on Thursday, there was a discernible shift away from technology stocks, leading to a 0.4% decline in the Nasdaq Composite index, primarily affected by falling share prices of major tech firms like Nvidia, Palantir, and Broadcom. Conversely, the Dow Jones gained 270 points, marking an increase of roughly 0.6%, while the S&P 500 managed to finish slightly higher.
Despite the midday flux, the overall trajectory of stock indices still pointed to a positive outcome for the week. The S&P 500 has increased approximately 0.9% since the week began, with the Dow seeing a rise of around 1.8%, and the Nasdaq gaining about 1.1%. As traders refine their strategies in anticipation of the economic indicators released on Friday, market sentiment appears cautiously optimistic.
