U.S. stock futures were pointing to a weaker open on Friday, hinting at a modest pullback after a series of record-setting sessions. The S&P 500 recently pushed to fresh highs, but traders appeared cautious, using the latest economic updates as a reason to take some profits.
The Commerce Department confirmed Friday that consumer prices rose in line with forecasts. Its personal consumption expenditures (PCE) index, the Fed’s favored inflation measure, increased 0.2% in July after a 0.3% rise in June. On a yearly basis, headline inflation held steady at 2.6%. Core PCE, which strips out food and energy, gained 0.3% on the month, lifting the annual rate to 2.9% from 2.8%.
The report also showed personal income advancing 0.4% in July, while spending climbed 0.5%, both slightly stronger than the previous month’s pace. Separately, second-quarter GDP growth was revised higher to 3.3%, reflecting stronger consumer demand and business investment.
Markets were also monitoring political developments in Washington, where a court is set to hear Fed Governor Lisa Cook’s case against President Donald Trump’s effort to remove her from the central bank. The dispute has fueled concerns about the Fed’s independence.
Thursday’s Gains and Earnings Impact
On Thursday, stocks closed near session highs, with the S&P 500 logging another record close. The Nasdaq rose 115 points, or 0.5%, while the Dow added 72 points, or 0.2%. Nvidia (NASDAQ:NVDA) weighed on sentiment early after reporting softer-than-expected data center sales, but its shares recovered much of their losses, closing down just 0.8%.
Sector Movers
Technology led the market higher. The NYSE Arca Computer Hardware Index surged 4.4% to an all-time peak, boosted by a 32% jump in Pure Storage (NYSE:PSTG) after strong earnings and upbeat guidance. Networking and software stocks also advanced, while utilities and telecom names declined.
Meanwhile, labor market data showed first-time unemployment claims fell to 229,000 last week, slightly better than expected, reinforcing the picture of a resilient economy.
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