Following a mixed performance in the previous session, stocks are expected to trend mostly higher in early trading on Friday. Currently, major index futures indicate an initial strength on Wall Street, with S&P 500 futures up by 0.8 percent.
The positive outlook for futures solidified after the anticipated report from the Commerce Department showed that consumer prices in the U.S. rose in line with economists' estimates in June.
According to the Commerce Department, the personal consumption expenditures (PCE) price index inched up by 0.1 percent in June, following an unchanged rate in May. This increase was in line with predictions.
The report also indicated that the annual growth rate of the PCE price index slowed to 2.5 percent in June from 2.6 percent in May, matching economists' expectations.
Simultaneously, the core PCE price index, which excludes food and energy prices, rose by 0.2 percent in June after a 0.1 percent uptick in May, exceeding the anticipated 0.1 percent rise.
The core PCE price index’s annual growth rate remained steady at 2.6 percent in June, whereas economists anticipated a slowdown to 2.5 percent.
These inflation readings, favored by the Federal Reserve, were part of the Commerce Department's broader report on personal income and spending.
The report further revealed that personal income rose by less than expected, while personal spending increased in line with forecasts.
Additionally, the markets may benefit from bargain hunting after the tech-heavy Nasdaq and the S&P 500 dropped to their lowest closing levels in over a month on Thursday.
U.S. stocks experienced intense selling in the final hour of Thursday’s session due to heightened caution over earnings reports from mega-cap firms.
Among the major averages, the Dow managed to close higher, gaining 81.20 points or 0.2 percent to settle at 39,935.07, far from the day's peak of 40,438.82. The S&P 500, which spiked to 5,491.59, closed down 27.91 points or 0.5 percent at 5,399.22. The Nasdaq fell by 160.69 points or 0.9 percent to end at 17,181.72, down from a high of 17,544.46.
In overseas trading, the Asia-Pacific region turned in a mixed performance on Friday. Japan's Nikkei 225 Index declined by 0.5 percent, while China's Shanghai Composite Index edged up by 0.1 percent.
Conversely, major European markets have seen gains. Germany's DAX Index climbed by 0.5 percent, and both the U.K.'s FTSE 100 Index and France's CAC 40 Index rose by 0.9 percent.
In commodities trading, crude oil futures are down $0.38 to $77.90 per barrel after a previous increase of $0.69 to $78.28 per barrel. Meanwhile, gold futures are rebounding $21.10 to $2,374.60 per ounce after a sharp decline of $62.20 in the prior session to $2,353.50 per ounce.
On the currency front, the U.S. dollar is trading at 154.31 yen, up from 153.95 yen at Thursday’s close of New York trading. Against the euro, the dollar is valued at $1.0857 compared to $1.0846 from the previous day.
