U.S. stock futures are indicating a weaker open on Friday, suggesting equities may extend losses after closing slightly lower in the prior session.
The softer tone follows investor reaction to a batch of key economic releases, including the Federal Reserve’s preferred gauge of consumer inflation.
Data published by the Commerce Department showed that U.S. consumer prices rose a bit more than anticipated in December.
According to the report, the personal consumption expenditures (PCE) price index increased 0.4% in December, following a 0.2% rise in November. Economists had forecast a 0.3% gain.
On a year-over-year basis, the PCE index advanced 2.9% in December, up from 2.8% in the previous month. Analysts had expected the annual pace to hold steady.
Core PCE, which excludes volatile food and energy components, also climbed 0.4% in December after a 0.2% increase in November. Expectations had called for a 0.3% rise.
The annual core reading accelerated to 3.0% from 2.8% in November, slightly above projections of 2.9%.
Separately, another Commerce Department release indicated that U.S. economic growth slowed more sharply than forecast in the final quarter of 2025.
Gross domestic product expanded at a 1.4% rate in the fourth quarter, a marked slowdown from the 4.4% surge recorded in the third quarter. Economists had anticipated growth of 2.8%.
The department noted that gains in consumer spending and investment were partially offset by declines in government outlays and exports.
On Thursday, equities largely retreated, giving back some of the prior session’s strong advances. All three major averages ended lower, though losses were relatively contained.
The Dow Jones Industrial Average dropped 267.50 points, or 0.5%, to 49,395.16. The Nasdaq Composite declined 70.91 points, or 0.3%, to 22,682.73, while the S&P 500 slipped 19.42 points, or 0.3%, to 6,861.89.
Part of the market’s weakness stemmed from earnings-related disappointment at Walmart (NYSE:WMT), which fell 1.4%.
Although the retailer delivered fourth-quarter results above expectations, its earnings outlook for the current year came in below forecasts.
Investor sentiment was also pressured by a continued climb in crude oil prices amid concerns about a potential military confrontation between the U.S. and Iran.
Even so, many traders appeared cautious ahead of Friday’s inflation figures, which are closely watched for signals on the Federal Reserve’s next interest-rate moves.
Minutes from the Fed’s latest policy meeting revealed that several officials believe additional rate cuts may not be appropriate until there is clearer evidence that disinflation is firmly reestablished.
Sector performance on Thursday was mixed. Airline stocks suffered steep losses, with the NYSE Arca Airline Index tumbling 4.4%.
Housing-related shares also weakened, as shown by the Philadelphia Housing Sector Index’s 1.3% decline.
Conversely, computer hardware stocks rallied, pushing the NYSE Arca Computer Hardware Index up 3.3%.
Oil services companies advanced as well, benefiting from the sustained rise in crude prices driven by geopolitical tensions between Washington and Tehran.