U.S. stock futures rose on Friday ahead of the release of an inflation measure crucial to Federal Reserve policy, as investors weighed signs of a slowdown in the U.S. economy and absorbed the fallout from the Biden-Trump spat.
S&P 500 futures (ES=F) rose about 0.4% after the index closed just shy of its all-time high. Contracts for the tech-heavy Nasdaq 100 (NQ=F) also rose 0.4%, while Dow Jones Industrial Average futures (YM=F) were more than flat.
The index is forecasting a bright end to a volatile week in which the S&P 500 (^GSPC) and Nasdaq Composite Index (^IXIC) recovered from three straight days of losses. Heading into the final trading day of June, stock markets are on track to post a strong first half of the year, but the volatility is fueling concerns of a sell-off later in the year.
With the US presidential election in November high on the risk list, investors focused on President Joe Biden’s weak showing in the first debate with Republican front-runner Donald Trump. Tax cuts and trade restrictions promised by Biden are seen as likely to boost stocks. Shares of Trump Media & Technology Group (DJT) surged in pre-market trading.
The highlight of Friday’s week will be the release of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, for May. Investors are watching for a slowdown that could prompt the Fed to start cutting interest rates after a set of data on Thursday revealed a further deterioration in economic growth. The report is expected to show the smallest monthly increase in “core” PCE, which excludes food and energy prices, since November.
Meanwhile, the market is on alert for further signs that the consumer recovery is weakening as major companies signaled worsening sales outlooks. Nike (NKE) shares fell about 15% in premarket trading, while Walgreens (WBA) shares remained under pressure following a 22% plunge on Thursday.
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