FX.co ★ Futures Trim Gains After PCE Data

US stock futures pared their earlier gains but remained in positive territory on Friday, as indicators pointed towards a decelerating economy. The S&P 500 and Nasdaq 100 were poised to open 0.4% higher, reaching record levels, with Dow contracts advancing by 200 points. Recent data revealed unexpected declines in personal spending and income for May, alongside an unanticipated rise in core PCE inflation. Nonetheless, equities were bolstered by prospects of eased trade policies and increased confidence regarding forthcoming interest rate cuts from the Federal Reserve. Commerce Secretary Lutnick announced that the US had reached a trade agreement with China, contributing to the relief of lowered tariffs and averting potential shortages of rare earth materials. Additionally, progress in trade negotiations with India was suggested, indicating a shift in the White House's stance against trade barriers. As part of this shift, the Treasury decided to exclude the Section 899 tax from the upcoming tax legislation, encouraging foreign investment in the US. Meanwhile, Nike futures surged by 10% following robust earnings, and technology stocks gained from the renewed risk appetite.