US stock futures edged higher on Friday after snapping a recent losing streak, as signs of cooling inflation and waning AI worries buoyed Wall Street optimism toward the tail end of a topsy-turvy week.
S&P 500 futures (ES=F) put on 0.1%, and contracts on the Nasdaq 100 (NQ=F) gained roughly 0.2%, looking to build on Thursday’s roaring rally. Meanwhile, Dow Jones Industrial Average futures (YM=F) clung to the flatline.
Investors have gotten through a catch-up week for economic data with next year’s rate-cut hopes intact, having embraced the outcome of this week’s delayed November reports on jobs and consumer inflation despite warnings over their reliability.
The inflation data on Thursday provided the latest spark Wall Street had been searching for, as the Consumer Price Index found inflation cooling at a startling pace. The rally came even as some economists pointed to data collection limitations in the report, thanks to the federal government shutdown, and cautioned that January’s reading would give a better read on the overall state of price pressures.
The rosier inflation picture, combined with a weakening job market, have reignited hopes that the Federal Reserve will continue its recent string of easing. A plurality of traders are still betting on two cuts next year but have shifted more bets in recent days toward more cuts. Friday will bring a final picture of consumer sentiment from the University of Michigan, after the firm’s initial December survey found the key measure increasing for the first time in five months.
Meanwhile, the benchmark 10-year Treasury yield (^TNX) rose to hit 4.15% as bond markets across the world absorbed the Bank of Japan’s hike in interest rates to the highest level since 1995.
Despite Thursday’s rebound, stocks are headed for notable losses for the last full week of trading in 2025. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are both down near 1% this week. Despite annual hopes for a “Santa Claus” rally, both indexes have also been hit so far this month by a broader rotation out of tech stocks.
US stock markets will be open as scheduled on Dec. 24 and Dec. 26, the NYSE and Nasdaq said, after President Trump ordered the federal government to close on those days.
In corporates, Nike (NKE) shares tanked in premarket trading after the sneaker giant reported continued weakness in its China market, despite outpacing Wall Street’s revenue projections. On the positive side, Oracle (ORCL) stock climbed after China’s ByteDance signed deals to create a TikTok joint venture.
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