U.S. stock futures climbed slightly Friday as investors positioned themselves ahead of a crucial inflation reading that could influence Federal Reserve decisions on interest rates later this year. President Donald Trump also revealed a new set of tariffs, including levies on branded and patented pharmaceuticals, while media reports indicated the administration is considering policies to reduce reliance on imported semiconductors.
Futures show modest gains
By 03:02 ET, Dow futures were up 73 points, or 0.2%, S&P 500 futures rose 9 points, or 0.1%, and Nasdaq 100 futures gained 16 points, or 0.1%. Traders are balancing the incoming inflation data against the impact of the new U.S. tariff measures.
Wall Street indices fell Thursday after strong economic data, including a drop in weekly jobless claims and an upward revision to second-quarter GDP, tempered market expectations for further Fed rate cuts in 2025. Short-dated U.S. Treasury yields rose, moving inversely to prices.
Shares in Jabil declined despite the electronics maker posting stronger-than-expected profit and revenue forecasts for fiscal 2026. Analysts noted that Jabil’s (NYSE:JBL) performance, like semiconductor firm Micron (NASDAQ:MU) earlier this week, “were not as strong as many had hoped,” reducing some of the excitement around AI-driven growth.
Focus on PCE
Market attention now turns to the August personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation. Economists expect the core PCE to increase 0.2% month-on-month and remain at 2.9% year-on-year, consistent with July.
“Upside surprises in the final U.S. GDP numbers and jobless claims make it difficult for markets to agree on upcoming Fed cuts. A benign PCE reading on Friday won’t change that,” said analysts at ING, adding that next week’s employment report “should be more pivotal.”
Trump’s drug tariff plan
European and Asian pharmaceutical shares declined following Trump’s tariff announcement, which included 100% duties on branded and patented medicines. In Europe, shares of Novo Nordisk, Roche, Novartis, and AstraZeneca slipped, while Samsung Biologics, SK Biopharmaceuticals, and Sumitomo Pharma were among the laggards in Asia.
Trump’s tariff package, set to take effect October 1, also includes a 25% levy on heavy-duty trucks and duties on kitchen cabinets and upholstered furniture. The President said the tariffs aim to protect domestic industry and national security.
“…while country-level ’reciprocal’ tariffs are starting to take shape, product-specific tariffs remain a threat,” noted analysts at Capital Economics.
Tech sector reacts to semiconductor policy news
Tech stocks in Europe and Asia fell after a Wall Street Journal report suggested the U.S. government is considering measures to reduce dependence on imported semiconductors by boosting domestic production.
The policy could require U.S. tech firms to match domestic output with imported semiconductors or face tariffs, potentially pressuring foreign companies and increasing trade uncertainty.
Shares of ASML dipped in early European trading, while semiconductor players ASM International and Infineon fell more than 1%. In Asia, Taiwan Semiconductor Manufacturing Co was flat, Samsung Electronics lost 3.3%, and SK Hynix dropped 5.6%.
Gold stabilizes; oil climbs
Gold prices remained steady after easing from record highs, supported by safe-haven demand amid tariff concerns and anticipation of the PCE data. Persistently elevated inflation could limit the Fed’s incentive to cut rates, maintaining support for bullion.
Oil prices rose Friday, positioning the commodity for a notable weekly advance, as attacks on Russian energy infrastructure and a surprise decline in U.S. crude inventories tightened supply outlooks.
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