Futures Pointing To Initial Pullback On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a lower open on Friday, with stocks likely to give back ground after trending lower over the past few sessions.

Traders may look to cash in on the recent strength in the markets, which saw the S&P 500 reach new records despite some relatively choppy trading.

The futures remained in negative territory after the Commerce Department released a closely watched report showing consumer prices increased in line with estimates in the month of July.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after climbing 0.3 percent in June. The uptick matched expectations.

The annual rate of growth by the PCE price index in July came in unchanged from June at 2.6 percent, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index rose by 0.3 percent in July, matching the increase seen in June as well as expectations.

The annual rate of growth by the core PCE price index ticked up to 2.9 in July from 2.8 percent in June. The slight acceleration also matched estimates.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

Traders are also likely to keep an eye on developments in Washington, D.C., where a District Court Judge is scheduled to hold a hearing on Federal Reserve Governor Lisa Cook's request to temporarily block President Donald Trump's attempt to remove her from her position.

After showing a lack of direction early in the session, stocks moved mostly higher over the course of the trading day on Thursday. The major averages added to the gains posted in the two previous sessions, with the S&P 500 reaching another new record closing high.

The major averages ended the day just off their highs of the session. The Nasdaq climbed 115.02 points or 0.5 percent to 21,705.16, the S&P 500 rose 20.46 points or 0.3 percent to 6,501.86 and the Dow edged up 71.67 points or 0.2 percent to 45,636.90.

The strength that emerged on Wall Street came as traders digested highly anticipated earnings news from Nvidia (NVDA), with the AI darling and market leader reporting reported second quarter results that largely exceeded expectations but data center sales that came in below estimates.

While shares of Nvidia ended the day down by 0.8 percent, the company's stock climbed well off its early lows, contributing the advance by the broader markets.

Investors were also looking ahead to the release of the Commerce Department's on personal income and spending in the month of July, which includes the Federal Reserve's preferred readings on consumer price inflation.

On the U.S. economic front, the Commerce Department released a report showing the U.S. economy grew by more than previously estimated in the second quarter of 2025.

The report said real gross domestic product shot up by 3.3 percent in the second quarter compared to the previously reported 3.0 percent surge. Economists had expected the jump in GDP to be upwardly revised to 3.1 percent.

The Commerce Department said the stronger than previously estimated growth primarily reflected upward revisions to investment and consumer spending.

A separate report released by the Labor Department on Thursday showed a modest decrease by first-time claims for U.S. unemployment benefits in the week ended August 23rd.

The Labor Department said initial jobless claims dipped to 229,000, a decrease of 5,000 from the previous week's revised level of 234,000.

Economists had expected jobless claims to slip to 230,000 from the 235,000 originally reported for the previous week.

While most of the major sectors showed only modest moves on the day, computer hardware stocks moved sharply higher, driving the NYSE Arca Computer Hardware Index up by 4.4 percent to a record closing high.

Pure Storage (PSTG) helped lead the sector higher, skyrocketing by 32.3 percent after reporting better than expected second quarter results and raising its full-year guidance.

Networking and software stocks also saw notable strength, contributing to the advance by the tech-heavy Nasdaq, while utilities and telecom stocks moved to the downside.

Commodity, Currency Markets

Crude oil futures are slipping $0.22 to $64.38 a barrel after climbing $0.45 to $64.60 a barrel on Thursday. Meanwhile, after jumping $25.70 to $3,474.30 an ounce in the previous session, gold futures are edging down $4.60 to $3,469.70 an ounce.

On the currency front, the U.S. dollar is trading at 147.37 yen versus the 146.93 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1653 compared to yesterday's $1.1683.

Asia

Asian stocks ended mixed on Friday as caution prevailed ahead of a key U.S. inflation report due later in the day that might show core personal consumption expenditures prices rose 2.9 percent year-over-year in July, the fastest pace in five months.

Recent strong U.S. economic data soothed recession jitters but also fueled concerns about persistent inflation amid geopolitical factors like the Russian-Ukraine conflict. Analysts say that a higher-than-expected print may not take a September rate cut off the table.

Federal Reserve Governor Christopher Waller on Thursday said he wants to start cutting U.S. interest rates next month.

China's Shanghai Composite Index rose 0.4 percent to 3,857.93, extending its stellar performance through August driven by increased domestic liquidity.

Hong Kong's Hang Seng Index edged up by 0.3 percent to 25,077.62 ahead of earnings reports from several heavyweights.

Japanese markets ended slightly lower due to profit taking on the final day of the month. The Nikkei 225 Index dipped 0.3 percent to 42,718.47, pressured by a strong yen and some weak economic readings, with factory output falling more than expected last month and retail sales growth coming in below estimates.

The broader Topix Index settled 0.5 percent lower at 3,075.18. Automakers led losses, with Honda Motor and Toyota Motor falling 1.3 percent and 1.6 percent, respectively.

Seoul stocks ended lower due to foreign selling. The Kospi slipped 0.3 percent to 3,186.01.

Australian markets ended on a flat note but notched their best August performance in sixteen years as the corporate earnings season wrapped up.

Across the Tasman, New Zealand's benchmark S&P/NX-50 Index edged up by 0.2 percent to 12,930.73, extending gains from the previous session.

Europe

European stocks have moved modestly lower on Friday as investors digest key U.S. inflation data that could provide additional clues on a potential Federal Reserve rate cut in September. Earlier in the day, data showed French consumer prices rose slightly less than anticipated in August.

While the French CAC 40 Index is down by 0.3 percent, the U.K.'s FTSE 100 Index is down by 0.2 percent and the German DAX Index is down by 0.1 percent.

Stockholm-based tech firm Hexagon AB has moved to the downside after naming an interim finance chief.

Remy Cointreau has also fallen. The French spirits maker raised the lower end of its annual guidance, saying it expects to take a smaller hit to profits from tariffs than previously forecast.

Sports Direct owner Frasers Group has also dropped after announcing that Sir Jon Thompson will succeed David Daly as Chair effective September 1, 2025.

U.S. Economic News

Consumer prices in the U.S. increased in line with economist estimates in the month of July, according to closely watched data released by the Commerce Department on Friday.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after climbing 0.3 percent in June. The uptick matched expectations.

The annual rate of growth by the PCE price index in July came in unchanged from June at 2.6 percent, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index rose by 0.3 percent in July, matching the increase seen in June as well as expectations.

The annual rate of growth by the core PCE price index ticked up to 2.9 in July from 2.8 percent in June. The slight acceleration also matched estimates.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The report said personal income climbed by 0.4 percent in July after rising by 0.3 in June, while personal spending grew by 0.5 in July following a 0.4 percent increase in June.

At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of August. The Chicago business barometer is expected to pull back to 45.2 in August after jumping to 47.1 in July.

The University of Michigan is due to release its revised reading on consumer sentiment in the month of August at 10 am ET. The consumer sentiment index for August is expected to be unrevised from the preliminary reading of 58.6, which was down from 61.7 in July.