US Stocks Likely To Open Lower, But 'Economic Conditions Don't Signal A Downturn,' Say Analysts As They Expect 'Resilient Earnings' To Lift Equities
U.S. stock futures declined on Friday after tumbling in trade on Thursday. Futures of all four benchmark indices were lower in premarket trading.
While Jerome Powell‘s comments on tariff-induced “transitory” inflation buoyed the market on Wednesday, the concerns about the projections of higher inflation and lower economic growth dampened the markets on Thursday.
However, the “dot plot” still projected two rate cuts in 2025, maintaining the Fed’s initial forecast.
The 10-year Treasury yield stood at 4.22%, while the two-year yield was at 3.94%. According to the CME Group's FedWatch tool, there is an 83.8% chance that the Federal Reserve will keep the interest rates unchanged during its May meeting.
Futures
Change (+/-)
Nasdaq 100
-0.46%
S&P 500
-0.39%
Dow Jones
-0.38%
Russell 2000
-0.64%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Friday. The SPY was down 0.57% to $562.24, and the QQQ declined 0.40% to $477.34, according to Benzinga Pro data.
Cues From The Last Session
Only energy, utilities, financials, and healthcare sectors advanced on Thursday, whereas materials, consumer staples, and information technology sectors led the decline.
Darden Restaurants Inc. (NYSE:DRI) shares rose 6% on strong earnings, while Accenture Plc (NYSE:ACN) fell 7% due to lower-than-expected guidance.
U.S. jobless claims rose slightly, indicating a stable March labor market, but rising trade tensions and government spending cuts cloud the outlook. Longer unemployment durations were also noted. Philadelphia Fed manufacturing, while still expanding, slowed in March, falling to 12.5, though exceeding forecasts.
February U.S. home sales rose to 4.26 million units, exceeding forecasts, as supply increased, though economic uncertainty poses a risk. Meanwhile, the U.S. Leading Economic Index fell 0.3% in February, continuing a decline, but the six-month pace of decline slowed significantly.
As of Thursday, the Nasdaq 100 remains in correction territory, having fallen 11.45% from its prior peak. Similarly, the Dow Jones and S&P 500 have ...
