Wall Street Futures Stabilize, But Weekly Losses Loom Amid U.S. Debt Concerns and Tax Bill Uncertainty

U.S. stock index futures held steady in early trading Friday, following a volatile week dominated by fiscal concerns and political wrangling in Washington.

At 05:55 ET (09:55 GMT), Dow Jones Futures edged down 10 points (-0.1%), while S&P 500 Futures inched up 3 points (+0.1%), and Nasdaq 100 Futures gained 15 points (+0.1%).

Despite Friday’s calm open, all three major indices are poised to end the week with losses of 1.5% to 2%, reflecting growing investor unease over the U.S. debt outlook and monetary policy uncertainty.

Tax Bill Approval Sparks Fiscal Jitters

Markets remained rattled after the House of Representatives narrowly approved President Donald Trump’s tax cut and spending bill on Thursday. While supporters tout the bill as a boost for middle-class Americans and business competitiveness, the Congressional Budget Office (CBO) warned the legislation could add $3.8 trillion to the federal debt over the next decade.

The U.S. national debt currently stands at $36.2 trillion, and credit ratings agency Moody’s downgraded the U.S. sovereign rating last week over concerns that fiscal discipline was weakening. Treasury markets reflected these anxieties, with yields climbing this week and a weak auction of 20-year bonds underscoring reduced investor appetite for long-term government debt.

The bill now moves to the Senate, where further deliberations are expected.

Housing Data in Focus

Amid a complex macroeconomic landscape, investors are turning their attention to new home sales and building permits data, due later Friday, for insights into the health of the U.S. housing sector—a key component of consumer confidence and broader economic stability.

Adding to the cautious optimism, Federal Reserve Governor Christopher Waller said Thursday he still sees a potential for rate cuts later this year, providing some reassurance to markets hoping for looser monetary policy.

In a related legal development, the U.S. Supreme Court ruled that the Federal Reserve operates as a unique entity, effectively blocking any near-term attempt by President Trump to remove Fed Chair Jerome Powell, who has faced pressure from the White House to cut rates.

Tesla Slips Behind BYD in Europe

In corporate news, Tesla (NASDAQ: TSLA) may come under pressure following a report from JATO Dynamics showing that Chinese EV manufacturer BYD outsold Tesla in Europe for the first time. BYD registered 7,231 vehicles in April, narrowly beating Tesla’s 7,165 registrations, highlighting intensifying competition in the world’s fastest-growing EV market.

Crude on Track for Weekly Decline

Oil prices remained under pressure, with both Brent and WTI futures down 0.1% in early trading, at $64.39 and $61.16 per barrel, respectively.

Both benchmarks are down about 2% for the week, snapping a two-week winning streak as oversupply concerns reemerged.

OPEC+ is reportedly considering a production increase of 411,000 barrels per day in July, according to Bloomberg, with discussions expected at the June 1 meeting. At the same time, attention is also turning to U.S.-Iran nuclear talks in Rome, where any breakthrough could lead to more Iranian oil returning to global markets.