U.S. equity futures were pointing to a softer open on Friday, suggesting stocks may retreat after a string of gains that recently pushed the S&P 500 to fresh record highs despite volatile sessions.
Some traders appeared ready to lock in profits following the market’s resilience. Sentiment was further tested after the Commerce Department released inflation figures that came in exactly as projected.
According to the report, the personal consumption expenditures (PCE) price index rose 0.2% in July, following a 0.3% increase in June. On a yearly basis, headline PCE held steady at 2.6%, while the core measure—excluding food and energy—advanced 0.3% for the month, lifting the annual rate slightly to 2.9% from 2.8%. All metrics aligned with forecasts.
The PCE data, considered the Federal Reserve’s preferred inflation gauge, was released alongside updates on personal income and spending. Income climbed 0.4% in July, while spending gained 0.5%, both stronger than the prior month’s figures.
Markets also kept an eye on Washington, where a federal judge is set to hear Fed Governor Lisa Cook’s request to block President Donald Trump’s attempt to oust her from office, a case that could have implications for the central bank’s independence.
Thursday Recap: Another S&P 500 Record
On Thursday, Wall Street extended its winning streak, with the S&P 500 notching another all-time closing high. The Nasdaq advanced 115.02 points, or 0.5%, to 21,705.16. The S&P 500 added 20.46 points, or 0.3%, to 6,501.86, while the Dow gained 71.67 points, or 0.2%, to 45,636.90.
The advance came as investors digested Nvidia’s (NASDAQ:NVDA) quarterly results. The AI leader topped earnings expectations but reported weaker-than-expected data center sales. Shares finished down 0.8% but rebounded from early losses, helping support broader sentiment.
Economic Updates
The Commerce Department also revised second-quarter GDP growth higher, showing the economy expanded at a 3.3% pace, up from the earlier 3.0% estimate. The revision reflected stronger consumer spending and business investment than initially reported.
In labor market news, initial jobless claims fell to 229,000 in the week ending August 23, down 5,000 from the prior week’s revised figure. Economists had looked for 230,000.
Sector Moves
Technology stocks once again provided momentum. Computer hardware names surged, sending the NYSE Arca Computer Hardware Index up 4.4% to a record close. Pure Storage (NYSE:PSTG) led the charge, skyrocketing 32.3% after posting robust quarterly results and lifting its outlook.
Strength was also seen in networking and software stocks, boosting the Nasdaq, while more defensive sectors such as utilities and telecom ended weaker.
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