U.S. stock futures advanced on Friday following declines in the previous session, with market participants preparing for significant economic data that could shape expectations for Federal Reserve policy shifts.
As of 4:33 P.M. (GMT+7), Dow Jones Industrial Average futures ticked up by 0.23%, or 113.30 points, to 49,508.50 points, while S&P 500 futures added by 0.34%, or 23.40 points, to 6,885.30 points. Nasdaq 100 futures also increased by 0.43%, or 107.30 points, to 24,904.60 points.
Energy prices remained in focus after crude benchmarks Brent and West Texas Intermediate continued their upward trajectory on Thursday. The gains were driven by ongoing strain between the United States and Iran, with President Donald Trump stating he will decide within ten days whether to authorize military action as negotiations over Iran’s nuclear activities continue.
Attention is turning to the release of the first reading of fourth-quarter U.S. GDP as well as the PCE index, a preferred inflation measure for the Federal Reserve. Market consensus projects that the headline PCE will show a 2.8% increase from a year ago, while the core PCE, which excludes food and energy prices, is expected to rise by 3% over the same period.
Federal Reserve policymakers remain divided over the timing of potential rate reductions. Although inflation rates have eased from their recent highs, they remain above the central bank’s 2% objective. Minutes from January’s meeting indicate some officials are seeking more definitive proof of moderating inflation before supporting additional rate cuts, while others remain concerned about the risks to labor market resilience.
Meanwhile, earnings season is ongoing. Several high-profile companies have released results, with Nvidia and Dell among the major firms scheduled to report next week. Their upcoming reports may offer further clarity on recent volatility in AI-related equities, which some analysts believe has been exaggerated.
