U.S. stock futures inched upward Friday as investors prepared for the release of a key inflation metric that could influence Federal Reserve policy decisions later this year. Meanwhile, President Donald Trump introduced a fresh set of tariffs, including duties on branded and patented pharmaceuticals. Media outlets also reported that the administration is exploring ways to reduce America’s dependence on imported semiconductors.
Futures edge up
By 03:02 ET, Dow futures were up 73 points, or 0.2%, S&P 500 futures gained 9 points, or 0.1%, and Nasdaq 100 futures added 16 points, or 0.1%. Investors are digesting the latest tariff announcements while awaiting new inflation data.
On Thursday, Wall Street’s main indexes fell amid strong economic data, including lower-than-expected jobless claims and an upward revision to second-quarter GDP. The figures tempered expectations for further Fed rate cuts in 2025, while short-term U.S. Treasury yields climbed—moving inversely to bond prices.
Jabil shares fell despite the company posting better-than-expected revenue and profit forecasts for fiscal 2026. Analysts noted that Jabil’s (NYSE:JBL) results, similar to semiconductor firm Micron (NASDAQ:MU) earlier this week, “were not as strong as many had hoped,” tempering some of the enthusiasm around artificial intelligence.
Eyes on PCE
Attention now turns to the August personal consumption expenditures price index, the Fed’s preferred inflation gauge, which could guide policymakers on interest rate decisions for the final two meetings of the year. Economists expect core PCE inflation to hold at 0.2% month-on-month and remain at 2.9% year-over-year, the same as in July.
“Upside surprises in the final U.S. GDP numbers and jobless claims make it difficult for markets to agree on upcoming Fed cuts. A benign PCE reading on Friday won’t change that,” analysts at ING said, adding that next week’s jobs report “should be more pivotal.”
Trump unveils new drug tariffs
Shares of European and Asian drugmakers declined after Trump’s tariff announcement, which included a 100% duty on branded and patented pharmaceuticals. In Europe, Novo Nordisk, Roche, Novartis, and AstraZeneca all slipped, while Samsung Biologics, SK Biopharmaceuticals, and Sumitomo Pharma fell in Asia.
Trump’s package, effective October 1, also imposes a 25% levy on imported heavy-duty trucks and tariffs on kitchen cabinets and upholstered furniture. The President said the measures are intended to protect domestic industry and national security.
“…while country-level ’reciprocal’ tariffs are starting to take shape, product-specific tariffs remain a threat,” analysts at Capital Economics noted.
Tech stocks react to semiconductor import news
European and Asian technology stocks fell after a Wall Street Journal report indicated that the U.S. is considering measures to reduce reliance on imported semiconductors by increasing domestic production.
According to the report, a proposed policy would require U.S. tech companies to match their semiconductor imports with domestic output or face tariffs. The plan could pressure foreign tech companies by curbing U.S. demand for overseas chips, squeezing margins, and increasing trade uncertainty.
ASML shares slipped in early European trading, while semiconductor firms ASM International and Infineon declined more than 1%. In Asia, Taiwan Semiconductor Manufacturing Co remained flat after a 2% dip, Samsung Electronics dropped 3.3%, and SK Hynix fell 5.6%.
Gold steady, oil climbs
Gold prices held steady after retreating from record highs, supported by safe-haven demand amid tariff uncertainty and anticipation of the PCE data. Persistent inflation expectations could reduce the Fed’s incentive to cut rates, keeping bullion well-bid.
Meanwhile, oil prices rose, positioning the commodity for a notable weekly gain, as attacks on Russia’s energy infrastructure and a surprise drop in U.S. crude inventories tightened supply concerns.
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