Stock futures edged lower on Friday morning, with the Dow Jones Industrial Average futures down 60 points (0.1%), S&P 500 futures slipping 0.1%, and Nasdaq-100 futures dropping 0.2%, CNBC reports.
Despite these modest declines, all three major US stock indexes are on track to post their second consecutive week of gains.
On Thursday, the S&P 500 hit a record closing high, marking its first record close since early December. This milestone followed comments from President Donald Trump at the World Economic Forum in Davos, Switzerland, where he called for lower interest rates and urged OPEC to reduce crude oil prices. These remarks boosted investor sentiment and risk assets earlier in the week.
Optimism surrounding Trump’s pro-business policies, including his promises to cut taxes and reduce regulations, has buoyed markets. Investors were particularly encouraged by the absence of immediate formal action on trade tariffs. Meanwhile, strong corporate earnings reports and rising yields on the benchmark 10-year Treasury note have contributed to market momentum.
Chris Hussey, managing director at Goldman Sachs, noted that improved growth in corporate America is helping to stabilize Treasury yields, which had been under pressure earlier. BlackRock CEO Larry Fink added that Trump’s push to stimulate private-sector capital could drive inflationary pressures and potentially elevate the 10-year Treasury yield back toward 5%.
Global markets followed Wall Street’s lead on Friday, with Asia-Pacific indices posting gains. South Korea’s Kospi rose 0.85%, Australia’s S&P/ASX 200 extended its winning streak, and Hong Kong’s Hang Seng climbed 1.67% during trading. However, Japan’s Nikkei 225 and Topix closed flat after the Bank of Japan raised its policy rate to 0.5%, the highest level since 2008.
In the commodities space, crude oil is on pace for its largest weekly decline since November, with West Texas Intermediate and Brent crude futures down 4.2% and 3.1% for the week, respectively. In contrast, gold prices are set to record a fourth straight weekly gain, reflecting ongoing demand for safe-haven assets.
