On Friday, U.S. stock futures remained largely unchanged as investors anticipated the release of the eagerly awaited Personal Consumption Expenditures (PCE) report while also considering recent developments on tariffs. The forthcoming inflation data is poised to shape expectations regarding the Federal Reserve's monetary policy, especially following stronger-than-anticipated GDP growth figures and a decline in jobless claims, which have slightly tempered prospects for rate cuts. Despite this, markets continue to predict a 25 basis point reduction in the federal funds rate in both October and December.
In terms of trade developments, President Trump announced the introduction of a 100% tariff on branded or patented pharmaceutical products, effective from October 1st, unless the manufacturers establish production facilities within the United States. Additional tariff measures include a 25% duty on heavy trucks, a 50% tariff on kitchen cabinets and bathroom vanities, and a 30% levy on imports of upholstered furniture. In pre-market trading, Eli Lilly's stock saw an increase of approximately 2%, while Pfizer's shares rose by 0.9%. Furthermore, Trump laid out plans for American investors to take over TikTok’s U.S. operations from its Chinese parent company, ByteDance.
