Traders at the New York Stock Exchange faced a steady market Thursday night, as stock futures showed minimal movement ahead of anticipated economic data and a significant Supreme Court ruling regarding President Donald Trump’s tariffs. Futures associated with the Dow Jones Industrial Average ticked up by 7 points, or 0.01%, while S&P 500 futures increased by 0.09%, and Nasdaq 100 futures rose by 0.1%.
Market participants are bracing for a crucial update on the economic landscape, with the gross domestic product (GDP) report for the fourth quarter set to be released Friday morning. Economists surveyed by Dow Jones project a 2.5% increase in real GDP, following a robust 4.4% growth in the third quarter that exceeded previous expectations.
Additionally, the personal consumption expenditures (PCE) price index report, which is favored by the Federal Reserve as an inflation measure, is anticipated to show a year-over-year increase of 2.8%. The core PCE, which excludes the volatility of food and energy prices, is projected to rise by 3% over the same timeframe.
Federal Reserve policymakers are currently split on how to approach the persistent inflation that remains above the central bank’s 2% target. While some officials express concern for the labor market, others are focused on curtailing inflation. Recent minutes from the January Fed meeting reveal that several officials are seeking more evidence of cooling inflation before considering further interest rate cuts.
In addition to the economic reports, a decision from the Supreme Court regarding the legality of Trump’s tariffs under the International Emergency Economic Powers Act is also on the horizon. Wall Street experts generally anticipate a favorable market response if the court decides to overturn the tariffs, although there are expectations that the administration may attempt to reinstate them by other means. The Supreme Court has set decision days for next Tuesday and Wednesday, which adds to the uncertainty.
Paul Stanley, chief investment officer at Granite Bay Wealth Management, noted that the market seems to be in a holding pattern as it awaits new catalysts. He indicated that both the Supreme Court ruling and upcoming earnings from Nvidia could significantly influence market dynamics in the near term.
The S&P 500 encountered a slight decline of nearly 0.3% on Thursday, resulting in the index remaining largely unchanged for the year thus far. Similarly, the Nasdaq Composite fell by 0.3% during the regular trading session, while the Dow Jones Industrial Average dropped 267 points, or 0.5%. Tensions between the U.S. and Iran have also escalated, following President Trump’s comments regarding potential military actions against Iran within the next 10 days, contributing to rising oil prices amid concerns of an impending strike.
Despite these challenges, the S&P 500 is on track for modest gains of 0.4% this week. Meanwhile, the Nasdaq appears poised to break a five-week losing streak, showing an increase of 0.6% through Thursday. The Dow, however, is projected to end the week with a slight loss of 0.2%.
