US stock futures remained relatively stable on Friday following a recent pullback from record highs. Investors, grappling with a lack of compelling data, anxiously awaited a resolution to the ongoing government shutdown, which has now reached its 10th day.
Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 all indicated marginal movements just above the flat line. This week has proven to be particularly volatile for the markets, with opposing influences stemming from hopes surrounding AI demand and concerns over the federal shutdown. Despite the challenges, the S&P 500 and Nasdaq Composite appeared poised for slight weekly gains, whereas the Dow was bracing for a noticeable decline.
Nvidia has acted as a stabilizing force for Wall Street, with shares of the AI frontrunner set to build on its record-high from the previous day, even amid ongoing regulatory scrutiny in China regarding its chip operations. Additionally, optimism in the AI sector was bolstered by Applied Digital’s reported quarterly revenue exceeding expectations, resulting in a staggering 25% premarket increase for the data center developer’s stock.
In the commodities market, gold rebounded to over $4,000 an ounce, recovering from earlier losses to enter a rally phase. The demand for safe-haven assets, such as silver, also surged, leading to a second consecutive day of gains for the precious metal.
The persistent government shutdown continues to dampen investor sentiment by delaying the release of key economic data that is closely monitored by both Wall Street and the Federal Reserve. However, signs of wavering resolve among Republican lawmakers have begun to emerge, raising hopes for an end to the political impasse.
In a related development, the Bureau of Labor Statistics has recalled furloughed employees to prepare for the release of the September Consumer Price Index, a critical inflation gauge originally scheduled for October 15. This now appears to be slated for later in the month.
With the ongoing data void, investors are turning their attention to private sector information, including the University of Michigan’s consumer sentiment report for October, which is expected to be a focal point on Friday morning. As uncertainty looms, many are on the lookout for indicators that might influence expectations regarding potential interest rate cuts by the Federal Reserve this year.
As earnings season approaches, led by financial giants JPMorgan and Citigroup next week, analysts are projecting lackluster performance for many companies, as concerns about tariffs and their impact on revenue mount.
In premarket trading, several notable stocks captured attention: Intel’s stock rose nearly 2% as it introduced its new Core Ultra series 3 processor, while Elastic saw a surge of about 10% despite receiving a downward adjustment in its price target from Bank of America. American Homes 4 Rent also experienced a rise of 9% after a recent decline in share price over the past month.
Conversely, Qualcomm faced a setback, with its stock dropping over 3% following news of an antitrust investigation launched by China regarding its acquisition of Israel’s Autotalks.
In lighter news, Applied Digital’s stock soared around 25% after reporting a quarterly revenue that exceeded expectations and announcing a deal with cloud company CoreWeave, reinforcing confidence in AI-driven demand.
Lastly, Levi Strauss raised its full-year profit outlook but fell short of Wall Street’s expectations, resulting in nearly a 7% decline in premarket trading for the denim manufacturer amid tariff-related concerns. Meanwhile, a ceasefire in Gaza has positively influenced oil prices, as optimism surrounding supply dynamics emerged.
