US stock futures rose on Friday, boosted by encouraging inflation data and reactions to the recent Biden-Trump debate.
S&P 500 futures (ES=F) rose about 0.3%, approaching their all-time high. Tech-focused Nasdaq 100 futures (NQ=F) rose 0.4%, while Dow Jones Industrial Average futures (YM=F) held slightly above the level. These indexes are on track to provide a positive end to a volatile week, which saw the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) recover from a three-day losing streak. Although stocks have had a strong first half of the year, there are concerns about potential declines in the second half.
The latest reading of the Federal Reserve’s preferred inflation gauge provided significant data for the first half of the year. The report showed that inflation slowed in May, with prices rising at their slowest pace since March 2021. The core personal consumption expenditures (PCE) index, which excludes food and energy costs and is closely monitored by the Federal Reserve, rose 0.1% in May compared to the previous month, meeting Wall Street expectations.
In addition to economic data, investors are also focusing on political developments ahead of the US elections in November. President Joe Biden’s performance in his first debate with likely Republican nominee Donald Trump was considered weak. Trump’s proposals for tax cuts and tighter trade policies are expected to boost stock markets. Shares of Trump Media & Technology Group (DJT) rose in premarket trading.
The market is also watching for signs of weakening consumer spending, as some major companies have issued pessimistic sales forecasts. Nike (NKE) saw its stock drop nearly 15% in premarket trading, while Walgreens (WBA) stock continued to face pressure after a 22% drop on Thursday.
By keeping an eye on these developments, investors hope to more effectively navigate the market’s ups and downs as the second half of the year progresses.
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