U.S. stock futures edge higher; lower recession concerns boost sentiment
U.S. stock index futures edged higher in subdued trading Friday evening, steadying after a mixed session on Wall Street as middling economic data spurred bets on more interest rate cuts this year, News.az reports citing Investing.
At 05:35 ET (09:35 GMT), Dow Jones Futures rose 90 points, or 0.2%, S&P 500 Futures gained 11 points, or 0.2%, and Nasdaq 100 Futures climbed 36 points, or 0.2%.
The Wall Street averages have made a strong comeback, supported by U.S. and Chinese officials agreeing on a 90-day truce in their tariff measures at the start of the week, which eased investors’ fears of escalating global trade tensions and rising risk to the economy.
Barclays no longer sees U.S. recession
The trade agreement between Washington and Beijing has prompted Barclays to upwardly revise its U.S. growth forecasts, predicting that the world’s largest economy will not slip into a recession later this year.
It now expects the U.S. economy to grow 0.5% this year and 1.6% next year, , the bank said in a note released late Thursday, up from previous forecasts of -0.3% and 1.5%, respectively.
Still, U.S. data released on Thursday showed soft retail sales as well as producer prices unexpectedly falling in April. The PPI figures came on the heels of a tame consumer price reading earlier in the week, cementing bets that the Fed is likely to cut rates at least twice this year.
The economic calendar is set to be relatively light on Friday, with the focus on a preliminary reading of the University of Michigan’s consumer sentiment survey.
Economists predict that the May reading will edge up slightly, after falling in April.
Against a backdrop of rising tariff worries, the survey has shown a deterioration in household optimism in recent months and increasing expectations for a spike in inflationary pressures.
Applied Materials falls on disappointing sales
Looking at the corporate sector, Applied Materials (NASDAQ:AMAT) stock fell premarket after the chipmaking equipment maker posted weaker-than-anticipated sales at its largest segment.
Revenue from its semiconductor systems unit, which accounts for the greatest part of its overall sales, came in at $5.26 billion, compared with estimates of $5.32 billion, according to LSEG data cited by Reuters.
Vistra Energy (NYSE:VST) rose premarket after the electricity firm announced a $1.9 billion deal to buy natural gas assets, which are likely part of its ambition to generate electricity for artificial intelligence data centers.
Videogame publisher Take-Two Interactive Software (NASDAQ:TTWO) dropped premarket after its annual bookings guidance missed estimates, following a delay in its hotly anticipated Grand Theft Auto VI title.
Crude on course for weekly gains
Oil prices traded in a largely steady fashion Friday, but were on course for a second consecutive weekly gain due to easing U.S.-China trade tensions.
At 05:35 ET, Brent futures dropped 0.1% to $64.44 a barrel, and U.S. West Texas Intermediate crude futures fell 0.2% to $61.50 a barrel.
Both benchmarks are on track for weekly gains of around 1%, largely on a surge earlier in the week after the U.S. and China, the world’s two biggest oil consumers, agreed to a 90-day pause on their trade war during which both sides would sharply lower trade duties.
That said, these gains have been capped by the rising prospect of an Iranian nuclear deal, which could see more crude entering the global market.
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