US Futures Edge Higher as Cooling Inflation Calms Markets

U.S. stock futures remained in positive territory on Friday, maintaining gains after rallying in the previous session. Signs of easing inflation and diminishing concerns surrounding artificial intelligence lifted investor sentiment, bringing renewed optimism to Wall Street after a volatile week.

As of 4:59 P.M. (GMT+7), S&P 500 futures added by 0.35%, or 23.40 points, to 6,798.20 points, while Nasdaq 100 contracts climbed about 0.44%, or 111.30 points, to 25,130.70 points, poised to extend Thursday’s powerful rebound. Dow Jones Industrial Average futures edged up 0.14%, or 67.60 points, to 48,019.40 points.

Investors continued to assess a week packed with delayed economic data, maintaining optimism for Federal Reserve rate cuts next year. Markets largely welcomed the latest jobs and consumer inflation reports, despite some caveats regarding their reliability as a result of the federal government shutdown.

Thursday’s Consumer Price Index release indicated inflation cooling at a faster-than-expected pace, delivering the momentum that markets had been seeking. Some economists, however, noted limitations in the latest figures and suggested that the January report will provide a clearer picture of inflation’s trajectory.

The improving inflation outlook, alongside a weakening labor market, has renewed bets that the Fed could extend its rate-easing cycle. While most traders are still pricing in two cuts in 2026, there has been an uptick in wagers on more aggressive easing in recent days.

Later Friday, attention will turn to the University of Michigan’s final December consumer sentiment reading, which follows news from the initial survey that optimism improved for the first time in five months amid better inflation expectations.

Despite Thursday’s rebound, major indices are still poised for weekly declines in the final full trading week of 2025. Both the S&P 500 and Nasdaq Composite are down around 1% for the week, pressured by rotation out of technology stocks that has dampened seasonal “Santa Claus rally” hopes. The Dow has also slipped this week, though it remains slightly higher for December overall.