Futures Pointing To Initial Rebound On Wall Street

(RTTNews) - After trending lower over the past few sessions, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.4 percent.

Traders may look to pick up stocks at relatively reduced levels following the recent pullback, which partly reflected concerns about valuations and the near-term outlook for the artificial intelligence trade.

The futures saw further upside following the release of a closely watched Commerce Department report showing consumer prices increased in line with economist estimates in the month of August.

The report said the personal consumption expenditures (PCE) price index climbed by 0.3 percent in August after rising by 0.2 percent in July. The price growth matched expectations.

The annual rate of growth by the PCE price index ticked up to 2.7 percent in August from 2.6 percent in July, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index rose by 0.2 percent in August, matching a revised increase in July as well as expectations.

The annual rate of growth by the core PCE price index came in at 2.9 percent in August, unchanged from July an in line with estimates.

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

Meanwhile, traders have seemingly shrugged off the news of a fresh batch of tariffs announced by President Donald Trump.

Trump announced in a post on Truth Social that he will be imposing a 100 tariff on pharmaceuticals unless the company is building a manufacturing plant in the U.S.

The president also announced a 25 percent tariff on heavy trucks and a 50 percent tariff on kitchen cabinets, bathroom vanities and associated products, with the new tariffs set to take effect October 1st.

Shortly after the start of trading, the University of Michigan is due to release its revised reading on consumer sentiment in the month of September.

The consumer sentiment index for September is expected to be unrevised from the preliminary reading of 55.4, which was down from 58.2 in August.

Following the pullback seen over the two previous sessions, stocks saw further downside during trading on Thursday. The major averages continued to give back ground after ending Monday's trading at new record closing highs.

The major averages ended the day well off their lows of the session but still firmly negative. The Nasdaq slid 113.16 points or 0.5 percent to 22,384.70, the S&P 500 declined 33.25 points or 0.5 percent to 6,604.72 and the Dow fell 173.96 points or 0.4 percent to 45,947.32.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slumped by 0.9 percent, while China's Shanghai Composite Index slid by 0.7 percent.

Meanwhile, the major European markets have moved to the upside on the day. While the French CAC 40 Index is up by 0.8 percent, the German DAX Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.5 percent.

In commodities trading, crude oil futures are creeping up $0.04 to $65.02 a barrel after edging down $0.01 to $64.98 a barrel on Thursday. Meanwhile, after inching up $3 to $3,771.10 an ounce in the previous session, gold futures are rising $13.90 to $3,785 an ounce.

On the currency front, the U.S. dollar is trading at 149.64 yen versus the 149.80 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1676 compared to yesterday's $1.1666.