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U.S. stock index futures edged higher in early Friday trading, stabilizing after a mixed performance on Wall Street, as investors weighed a run of soft economic data that bolstered expectations for interest rate cuts later this year.
At 05:35 ET (09:35 GMT), Dow Jones Futures rose 90 points, or 0.2%, while S&P 500 Futures added 11 points, or 0.2%, and Nasdaq 100 Futures climbed 36 points, or 0.2%.
Trade Truce Boosts Market Sentiment
Markets have regained their footing this week after a 90-day trade truce was reached between the U.S. and China, easing fears of further escalation in tariffs. The agreement fueled a rally in equities and rekindled hopes of improving global trade conditions.
This relief has come alongside softer-than-expected U.S. macro data, which has helped reinforce bets that the Federal Reserve could cut rates twice or more before year-end.
Barclays Drops Recession Forecast
Barclays now forecasts that the U.S. will avoid a recession in 2025, citing the positive impact of the U.S.-China trade truce. The bank upgraded its U.S. growth outlook to 0.5% for this year (from -0.3%) and 1.6% for 2026 (from 1.5%).
Still, data released Thursday showed a surprise decline in retail sales and softer producer prices, pointing to slowing demand. Combined with earlier tame CPI data, the figures strengthened the case for Fed policy easing.
Consumer Sentiment Data in Focus
The key economic highlight for Friday will be the University of Michigan’s preliminary consumer sentiment index for May, which economists expect to show a slight uptick. However, concerns over lingering inflation and elevated tariffs have weighed on household optimism in recent surveys.
Corporate Movers
- Applied Materials (NASDAQ:AMAT) fell in premarket trade after reporting weaker-than-expected revenue from its semiconductor systems segment, which totaled $5.26 billion, below estimates of $5.32 billion.
- Vistra Energy (NYSE:VST) rose after announcing a $1.9 billion acquisition of natural gas assets, a move seen as part of its pivot to supply power for AI-focused data centers.
- Take-Two Interactive (NASDAQ:TTWO) declined after issuing underwhelming annual bookings guidance tied to a delay in the release of Grand Theft Auto VI, its most anticipated title.
Oil Steady, Heads for Weekly Gain
Crude prices traded slightly lower Friday but remained on track for a second consecutive weekly gain:
- Brent crude slipped 0.1% to $64.44 a barrel
- WTI crude dipped 0.2% to $61.50 a barrel
Oil markets were lifted this week by the U.S.-China trade agreement, which is expected to support demand from the world’s top two crude consumers. However, gains have been tempered by growing expectations that a U.S.-Iran nuclear deal could increase global oil supply in the coming months.
As the week wraps up, investors appear cautiously optimistic, with markets now closely tracking upcoming economic signals and commentary from Fed officials to gauge the timing and magnitude of potential rate cuts.
