US stock futures showed positive movement on Friday, responding to President Trump’s latest announcement regarding a new round of tariffs targeting various industries, including pharmaceuticals, furniture, and heavy machinery, which are set to go into effect next week. Futures linked to the Dow Jones Industrial Average increased by 0.2%, while the S&P 500 also saw a similar rise. The tech-heavy Nasdaq 100 saw a slight increase of 0.1% in its futures contracts.
This uptick in futures comes after a challenging day for stocks on Thursday, marking the third consecutive day of losses for the market. Investors were rattled by an unexpected spike in GDP growth paired with a decline in jobless claims, leading to growing skepticism about the likelihood of further interest rate cuts this year. Concerns over the resilience of the AI boom, particularly amidst significant developments in the sector by major tech companies during the month, added to Wall Street’s unease.
In related news, President Trump approved a $14 billion deal concerning TikTok, though it remains contingent on approval from China. Additionally, Federal Reserve Governor Lisa Cook has urged the Supreme Court to dismiss Trump’s attempt to fire her, emphasizing that such a move over alleged mortgage fraud would likely lead to “chaos and disruption” within the markets.
The mixed signals from the economy, coupled with perceived divisions among Federal Reserve policymakers, have intensified anticipation for the upcoming August Personal Consumption Expenditures (PCE) report, which is pivotal for investors seeking to gauge inflation trends. Scheduled for release at 8:30 a.m. ET, the report is expected to indicate a moderation in price pressures, a factor crucial for the Fed’s projected rate cuts later this year.
In international developments, Asian pharmaceutical stocks experienced a downturn following Trump’s tariff announcement. The tariffs, effective October 1, could impose rates of up to 100% on imports of branded drugs unless manufacturers have initiated construction of production facilities in the U.S., according to Reuters.
On the commodities front, oil prices saw an increase on Thursday night, buoyed by Ukrainian military strikes against Russian oil infrastructure. The rising prices indicate the possibility of achieving the largest weekly gain in over three months amidst ongoing geopolitical tensions affecting production rates in the region.
