U.S. stock futures were pointing higher on Friday, with the S&P 500 eyeing fresh highs and technology stocks seen in the driver’s seat. Consumer sentiment and housing data are due later.
How are stock-index futures trading?
-
S&P 500 futures
ES00
rose 15.25 points, or 0.3%, to 4,826 -
Dow Jones Industrial Average futures
YM00
gained 45 points, or 0.1%, to 37,702 -
Nasdaq-100 futures
NQ00
jumped 97.25 points, or 0.5%, to 17,206
On Thursday, the S&P 500
rose 41.73 points, or 0.9%, to end at 4,780.94, the Dow industrials
rose 201.94 points, or 0.5%, to finish at 37,468.61, ending a three-day losing streak. Meanwhile, the Nasdaq Composite
surged 200.03 points, or nearly 1.4%, to 15,055.65.
What’s driving markets
The S&P 500 finished Thursday just 0.33% off its record close of 4796.56 reached Jan. 3, 2022, and futures action indicated the index could surpass that level on Friday.
Tech stocks are expected to lend a hand, with enthusiasm for the sector set to continue on Friday. Better-than-expected forecast and results from chipmaking Taiwan Semiconductor Manufacturing Co.
TSM
on Thursday helped drive a powerful session for the Nasdaq Composite.
TSMC’s cheer also aided in erasing 2024 losses for the S&P 500 and Nasdaq. Still, the Nasdaq is the only major index poised for a weekly win, up 0.5% versus a 0.3% drop for Dow industrials and little change for the S&P 500, according to FactSet.
TSCM shares soared in Taiwan on Friday following that strong day for U.S.-listed shares.
“Reflation trade is not happening, long technology is the most crowded trade of the moment,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note to clients.
“The Nasdaq-100 net long positions are at the highest levels in nearly two years. The stretched long positioning makes Nasdaq stocks vulnerable to selloff, but the softening Fed expectations and robust AI-demand should keep the technology space well-funded,” she said.
Markets entered 2024 with expectations for six or seven interest rate cuts by the Federal Reserve, those have seen push back, especially given strong economic data such as retail sales seen earlier this week.
As for Friday’s data, preliminary consumer sentiment for January is due at 10 a.m. and existing home sales for December at the same time.
A number of Federal Reserve officials will also make appearances, including Chicago Fed President Austan Goolsbee at 8:30 a.m., Fed Vice Chair for Supervision Michael Barr at 1 p.m. and San Francisco Fed President Mary Daly at 4:15 p.m.
And a number of companies will report, including Schlumberger NV
SLB,
Travelers Cos
TRV,
Fifth Third Bancorp
FITB,
State Street Corp.
STT
and Comerica Inc.
CMA.
