U.S. stock futures dip as court restores Trump tariffs; PCE data due
U.S. stock index futures edged lower Friday after an appeals court reinstated most of President Donald Trump’s sweeping trade tariffs, ahead of the release of key inflation data, News.az reports citing Investing.
At 05:30 ET (09:30 GMT), Dow Jones Futures fell 35 points, or 0.1%, S&P 500 Futures dropped 7 points, or 0.1%, and Nasdaq 100 Futures slipped xx points, or 0.2%.
The decision of the appeal court to allow President Trump’s tariffs to remain in place until next week is the latest dose of uncertainty for investors to contend with as the month comes to an end.
Yet Wall Street is set to post strong gains in May, with the broad-based S&P 500 adding more than 6% this month, the tech-heavy Nasdaq Composite surging 10% in that time, and the blue chip Dow Jones Industrial Average gaining around 4%.
Appeals court reinstates Trump tariffs
Thursday’s appeals court ruling came just a day after a federal trade court ordered Trump to immediately cease his tariffs.
The trade court ruling had ramped up hopes that Trump will be forced to taper his tariff agenda, which could present lesser economic disruption from higher trade duties.
However, the appeals court ruling now adds to the general tone of wariness, with the next hearing on the case scheduled for June 5, further pushing out decisions on hiring, spending or cutting rates.
Also weighing was the news that trade talks between the U.S. and China, the two largest economies in the world, had stalled, with U.S. Treasury Secretary Scott Bessent suggesting a personal intervention from President Trump may be needed to get progress.
"I believe we may at some point have a call between the president and party Chair Xi," Bessent said. "Given the magnitude of the talks, given the complexity ... this is going to require both leaders to weigh in with each other."
PCE data looms large
Investors were also skittish before key PCE price index data for April, due on Friday. The reading is the Federal Reserve’s preferred inflation gauge, and is likely to factor into the outlook for interest rates.
The core PCE price index for April, a measure which excludes volatile food and energy prices, is expected to rise 0.1% on a monthly basis, up from the previous flat figure.
This would result in an annual rise of 2.5%, a touch below the 2.6% gain seen the prior month.
However, there could be some volatility attached to this release given the uncertainty surrounding the Trump administration’s trade policies, and how importers reacted to the on-off imposition of tariffs.
More earnings
There are more corporate results to digest Friday, including numbers from clothing retailer Gap (NYSE:GAP), cosmetics company Ulta Beauty (NASDAQ:ULTA) and tech giant Dell Technologies (NYSE:DELL) in focus as they released results after the close on Thursday.
Crude set for weekly loss
Oil prices drifted higher Friday, but were on course for a weekly loss as traders await confirmation of another OPEC+ output hike amid heightened uncertainty over President Trump’s trade tariffs.
At 03:35 ET, Brent futures climbed 0.2% to $63.50 a barrel, and U.S. West Texas Intermediate crude futures rose 0.3% to $61.15 a barrel.
Both benchmarks are on track for losses of around 1.5% this week, potentially a second consecutive losing week as uncertainty over Trump’s tariffs and their economic impact weighed on the outlook for demand.
Oil prices have lost more than 10% since Trump announced his "Liberation Day" tariffs on April 2.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, is set to meet on Saturday, with the members expected to authorize another bumper production increase for July after agreeing 411,000 barrels-per-day hikes at the previous two meetings.
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