US stock futures displayed mixed movements on Friday as investors navigated the implications of President Trump’s latest tariff announcements and anticipated an upcoming inflation report that could influence expectations surrounding interest rate cuts.
Futures for the Dow Jones Industrial Average increased by approximately 0.2%, while those for the S&P 500 rose by 0.1%. Simultaneously, contracts for the tech-focused Nasdaq 100 fluctuated between minimal gains and declines, following a third consecutive day of losses for major US indices.
Investors are exercising caution in light of Trump’s threat to impose a 100% tariff on imports of branded drugs, targeting pharmaceutical companies that have not begun building manufacturing plants in the US. The announcement, made via social media late Thursday, lacked specific details and prompted declines in shares of drugmakers across Europe and Asia.
Additional tariffs will also affect imports of heavy trucks and certain categories of furniture, with the new duties set to take effect on October 1—just days away. This latest trade action introduces new uncertainty into markets already shaken by concerns surrounding the artificial intelligence boom, the potential for a US government shutdown, and a stronger economy that complicates the case for further rate cuts from the Federal Reserve this year. The S&P 500 is currently positioned to register its first weekly loss this month, following a sharp downturn that interrupted a record-setting rally.
Heightened attention is being paid to the inflation data, specifically the Personal Consumption Expenditures index, which is expected to show a 0.3% month-on-month growth and an annual increase of 2.7%. This update is scheduled for release at 8:30 a.m. ET.
In another development, Trump endorsed a deal to separate TikTok’s US operations from its parent company, China’s ByteDance. However, the $14 billion valuation has raised eyebrows on Wall Street, with many considering it significantly undervalued compared to a broader estimate of $40 billion for the social media giant.
In premarket trading, notable stocks include Eli Lilly, which saw a 1% increase following the tariff announcement impacting imported drugs. Intel’s shares rose by 3% after reports emerged that the company is seeking investments from both Apple and TSM. Additionally, Paccar experienced a 5% rise in premarket trading, benefitting from the new tariffs on trucks.
On a broader scale, Intel’s resurgence is characterized by ongoing discussions of potential deals, according to financial analysts. Meanwhile, the pharmaceutical sector in Asia experienced a downturn in response to Trump’s tariff news.
On the commodities front, oil prices experienced an uptick following successful Ukrainian military operations targeting Russian oil infrastructure, contributing to what could be the largest weekly gain for oil prices in over three months.
