US stock futures remained in the green on Friday after snapping a recent losing streak, as concerns about cooling inflation and slowing AI boosted Wall Street optimism at the tail end of a topsy-turvy week.
S&P 500 futures (ES=F) rose 0.3%, and contracts on the Nasdaq 100 (NQ=F) rose 0.5%, looking to build on Thursday’s roaring rally. Meanwhile, Dow Jones Industrial Average futures (YM=F) are above the flatline.
Investors kept hopes of next year’s rate cut intact through a catch-up week for economic data, embracing the results of this week’s late November reports on jobs and consumer inflation despite warnings over their credibility.
Thursday’s inflation data provided the latest spark Wall Street had been looking for. The consumer price index found inflation cooling at a surprising pace. The rally came even after some economists pointed to data collection limitations in the report, thanks to the federal government shutdown, and warned that January’s reading would give a better reading on the overall state of price pressures.
A rising inflation picture coupled with a weak job market has rekindled hopes that the Federal Reserve will continue its recent string of easing. A majority of traders are still betting on two cuts next year but have shifted more bets towards more cuts in recent days.
Friday will bring the final picture of consumer sentiment from the University of Michigan, after the firm’s preliminary December survey found a key measure rose for the first time in five months as respondents’ inflation expectations improved.
Despite Thursday’s rebound, stocks are headed for significant losses for the last full week of trading in 2025. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are both down about 1% this week. Despite annual hopes for a “Santa Claus rally,” both indexes have also been hit by a broader rout in tech stocks so far this month. The blue-chip Dow (^DJI) is also down this week, but it’s been a bit positive so far in December.
In corporates, shares of Nike ( NKE ) tanked in premarket trading after the sneaker giant reported continued weakness in the China market despite beating Wall Street revenue forecasts.
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