The stock market may witness a small downturn in the early trading hours on Friday, following a positive trend that dominated the previous sessions. The likelihood of a mild drop is indicated by the current major index futures, with S&P 500 futures declining by 0.2 percent.
Wall Street may face initial weaknesses as traders seize the opportunity to gain profits from recent market strengths. The significant averages, despite an early rally on Thursday, retreated while still managing to close the session at new record highs.
The markets may also be impacted by persistent uncertainties regarding interest rates following the Federal Reserve's recent monetary policy announcement. Even though the Fed continues to forecast three interest rate cuts this year, the schedule for the initial rate cut has yet to be decreed.
The probabilities for a quarter point rate cut in June have resurged to 65.9 percent as per CME Group's FedWatch Tool. However, there still remains a 27.8 percent chance that rates will not be altered during the meeting.
Fed Chair Jerome Powell is scheduled to address the "Fed Listens" event before trading begins, providing commentary regarding current economic conditions and the modifications in the economy and workforce brought about by the pandemic.
In terms of individual stocks, Lululemon's stock is expected to decrease markedly in the pre-market trading hours following their positive fiscal fourth-quarter results, accompanied by a disappointing guidance. Nike, the athletic footwear and apparel giant, may also experience a downturn due to its slowing growth in China despite earnings and revenues that outperformed expectations during the fiscal third quarter.
On a brighter note, FedEx is predicted to demonstrate notable pre-market strength after surpassing expectations with their quarterly results and announcing a new share repurchase program worth $5 billion.
Thursday's trading session observed the Dow concluding positively, and the S&P 500 and Nasdaq noting marginal gains, all closing at new record highs.
Asia-Pacific region's mixed stock market performance was highlighted by Japan's Nikkei 225 Index's modest 0.2 percent climb, China's Shanghai Composite Index's 1.0 percent slump, and Hong Kong's Hang Seng Index's sizable 2.2 percent plunge on Friday. European markets mirrored this mixed performance.
Commodities saw a minor increment of $0.14 in crude oil futures, reaching $81.21 a barrel after a $0.20 slip to $81.07 a barrel on Thursday. Gold futures, after an unprecedented surge of $23.70 to $2,184.70 an ounce in the previous session, are falling $9.30 to $2,175.40 an ounce.
As per the currency front, the U.S. dollar trades at 151.10 yen, depreciating from Thursday's close in New York at 151.62 yen. Against the euro, the dollar is valued at $1.0826, showing a decline from $1.0860 on the previous day.
