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U.S. stock futures rose on Friday, ahead of data that could show an inflation gauge favored by the Federal Reserve falling below a 4% level for the first time in more than two years.
What’s happening
-
Dow Jones Industrial Average futures
YM00,
+0.48%
rose 143 points, or 0.4%, to 34035. -
S&P 500 futures
ES00,
+0.48%
gained 20 points, or 0.5%, to 4357. -
Nasdaq 100 futures
NQ00,
+0.68%
increased 97 points, or 0.7%, to 14957.
On Thursday, the Dow Jones Industrial Average
DJIA
rose 116 points, or 0.35%, to 33666, the S&P 500
SPX
increased 25 points, or 0.59%, to 4300, and the Nasdaq Composite
COMP
gained 108 points, or 0.83%, to 13201.
What’s driving markets
The Commerce Department will report personal income data for August at 8:30 a.m. Eastern, a data release that also includes the PCE price index, the inflation gauge favored by the U.S. central bank.
The core PCE price index is forecast to rose 0.2% on a monthly basis, or 3.9% year-over-year.
“Today’s U.S. inflation and personal spending numbers could go some way to tempering expectations about a November rate hike from the Federal Reserve,” said Michael Hewson, chief market analyst at CMC Markets.
Besides the inflation data, there’s also the Chicago PMI and University of Michigan consumer sentiment index due for release.
Though the S&P 500 has climbed for two straight days, it’s set to end the month with a loss of around 5%, as long-term yields have climbed.
“By early summer, investors looked increasingly confident that the global economy was escaping the plague of stagflation. They are having a second thought – rightly so,” said Vincent Chaigneau, head of research at Generali Insurance Asset Management, which is underweight equities but has a small preference for U.S. equities. “The U.S. economy has been exceptionally resilient to the 525bp Fed tightening but is now showing signs of fatigue. Surging oil prices may keep inflation high for longer.”
Shares of Nike
NKE,
a component of the Dow Jones Industrial Average, rallied in premarket trade as the apparel maker reported better-than-forecast earnings.
