According to Reuters, U.S. stock index futures saw a slight increase on Friday, stabilizing after recent sharp declines. Investors are now closely watching a key inflation data release that could impact expectations regarding the Federal Reserve’s monetary policy direction. As of 5:25 a.m. ET, Dow E-minis were up by 124 points, or 0.29%, S&P 500 E-minis rose by 17.5 points, or 0.30%, and Nasdaq 100 E-minis were up by 48 points, or 0.23%.
The awaited data, the Personal Consumption Expenditure index – which is the Federal Reserve’s preferred measure of inflation, is scheduled to be released at 8:30 a.m. ET. Analysts expect the data to show a 2.5% increase in prices in January when compared to the previous year, slightly lower than the 2.6% rise seen in the preceding month. Excluding volatile components like food and energy, the index is projected to have risen by 2.6% in the prior month, down from a 2.8% increase in December.
This report on Friday is crucial for investors as they seek insights into the central bank’s potential policy adjustments. Policymakers have expressed a hawkish stance on interest rates, monitoring the potential inflationary impact of policies under the new administration of Donald Trump. Market observers anticipate a 25 basis point reduction in borrowing costs by the Fed in July, based on data compiled by LSEG. Later in the day, investors will be analyzing comments from Chicago Fed President Austan Goolsbee.
Amid recent reports indicating a slowing economy and concerns over excessive spending by tech companies like Nvidia and Microsoft on AI infrastructure, Wall Street’s major indexes are on track for monthly declines. The S&P 500 has registered drops in five of the last six sessions, preparing for its most significant one-month decline since April 2024. Additionally, the Nasdaq, which is heavily tech-focused, is down over 8% from its peak and is set for its sharpest one-month decline since September 2023.
In premarket trade, Nvidia saw a 0.5% increase after an 8.5% fall in the previous session, wiping out $274 billion of its market value due to a lower-than-expected quarterly gross margin outlook. Dell, on the other hand, dropped by 2.1% after forecasting a decrease in its adjusted gross margin rate for fiscal year 2026, citing increased costs related to AI server development. Similarly, HP Inc fell by 3.3% as its quarterly profit projections fell short of expectations.
Tech giants like Alphabet and Meta experienced a modest 0.5% increase, while banks sensitive to interest rates such as JPMorgan Chase & Co edged up by 0.3% and Bank of America rose by
