U.S. equity futures pointed to modest gains on Friday, following a recovery in stocks led by technology shares. Investors continued to assess tighter monetary policy alongside recent movements in oil prices.
At 4:18 p.m. (Bangkok time), Nasdaq-100 contracts gained 0.49%, compared with increases of 0.26% for S&P 500 futures and 0.18% for Dow Jones Industrial Average futures. The advance continued after Japan’s central bank lifted interest rates to a level not seen in 31 years.
Lower crude prices and declining bond yields helped support Thursday’s recovery. The Nasdaq Composite finished that session up 1.69%, outpacing the S&P 500’s 1.14% rise. The Dow added 316.14 points, a gain of 0.61%.
On Friday, futures tied to Brent crude plunged 2.41% to $102.29 a barrel, while U.S. benchmark West Texas Intermediate moved 1.84% lower to $100.03. Oil’s retreat provided some respite, although the war in Iran is approaching its seventh month. Disruptions to the Strait of Hormuz have produced an energy shock that continues to puzzle analysts. The resulting inflation pressure has made policy decisions more difficult for central banks globally.
The stronger equity performance followed Wednesday’s sharp selloff, triggered by the Federal Reserve’s quarter-percentage-point rate increase and its indication that at least one additional increase could follow this year. The move was the Fed’s first rate hike in three years. Nevertheless, by Thursday, the technology-led rebound suggested investors were looking beyond the decision.
Whether that single increase can restrain persistent inflation remains a concern among analysts and leading corporate executives. Speaking to reporters, JPMorgan Chase Chief Executive Jamie Dimon expressed doubt that inflation had been brought under control.
