U.S. stock futures ticked higher early Friday as investors awaited crucial inflation data that could shape the Federal Reserve’s next policy moves.
At 05:35 ET (09:35 GMT), Dow Jones Futures rose 65 points (0.1%), S&P 500 Futures gained 24 points (0.5%), and Nasdaq 100 Futures climbed 140 points (0.6%).
The optimism followed Thursday’s gains on Wall Street after President Donald Trump confirmed an upcoming meeting with Chinese President Xi Jinping in South Korea. For the week, the S&P 500 is on track for a 1.1% rise, while the Nasdaq Composite and Dow Jones Industrial Average are both up roughly 1.2%.
Still, traders remain cautious ahead of September’s Consumer Price Index (CPI) report, delayed by a three-week U.S. government shutdown. With the Fed expected to cut rates by 25 basis points next week—and again in December—the inflation print could set the tone for the rest of the year.
“With headline and core inflation near 3%, the Fed can cut and signal more easing,” said ING analyst Francesco Pesole. “Markets, however, already price in 50 bps by year-end.”
U.S.-China Trade Meeting Eases Tensions
Investor sentiment improved after the White House confirmed Trump’s meeting with Xi at the upcoming APEC summit. The news lifted risk appetite after months of trade friction.
The planned talks follow Washington’s proposal for 100% tariffs on select Chinese goods and Beijing’s export curbs on rare-earth materials—both of which had rattled global supply chains.
Market implications:
- Renewed dialogue could ease trade-related inflation pressures.
- A thaw in relations may boost demand outlooks for U.S. exports.
- However, trade uncertainty persists as Trump ended negotiations with Canada, citing “fraudulent” tactics in prior deals.
This diplomatic balancing act has markets hopeful but wary—anticipating progress without over-committing to risk assets ahead of concrete results.
Intel Shines as Tech Earnings Await
Corporate news also buoyed sentiment. Intel Corp. (NASDAQ: INTC) jumped in premarket trade after beating third-quarter profit estimates, helped by aggressive cost-cutting and restructuring efforts.
The strong results mark Intel’s first earnings release since new strategic investments from Nvidia, SoftBank, and a historic U.S. government stake, signaling renewed faith in domestic chipmaking.
Other key movers:
- Ford (NYSE:F) gained after strong SUV and truck sales drove earnings higher.
- Target (NYSE:TGT) rose slightly as it announced plans to cut 1,800 corporate jobs—about 8% of its HQ staff—to streamline operations.
Looking ahead, investors brace for a busy earnings week, with Apple and Microsoft among five of the “Magnificent Seven” tech giants reporting.