US Stock Futures Surge, Set to Finish Best Week Since November as Inflation Expectations Ease

Tech Sector Boosts Futures Dow Jones futures rose 230 points, or 0.5%, while S&P 500 and Nasdaq 100 futures gained 0.5% and 0.7%, respectively.

U.S. stock futures surged on Friday, setting Wall Street up for its best week since November, as tech stocks rebounded and data showed a smaller-than-expected increase in construction activity last month.

Tech Sector Boosts Futures

Tech stocks were in focus ahead of the opening bell, with Nasdaq futures rising 0.5% and S&P 500 futures gaining 0.5%. Dow Jones futures rose 230 points, or 0.5%.

At the close on Thursday, the Dow was up 2.9% for the week, the S&P 500 was up 1.9%, and the Nasdaq was up 0.9%. The Nasdaq is set for its best week since early December.

The broader S&P 500 index is also on track for its best week since early December, up 1.9%. The Dow is set for its best week since mid-December, up 2.9%.

The strong gains come as recent economic data showed a cooling in inflationary pressures. The December core Consumer Price Index (CPI) rose less than expected, and the Producer Price Index (PPI) also came in below forecasts.

The softer inflation figures have led to a sharp decline in the 10-year Treasury yield, which dropped to 4.57%, and have raised hopes for potential Federal Reserve rate cuts later this year.

The drop in yields has provided a boost to growth stocks, particularly in the tech sector, which led markets out of their early-year slump. Tech stocks are up for the week despite Tesla’s 5.2% decline.

Top Tech Stocks Rebounding

The tech-heavy Nasdaq led the premarket rally, buoyed by rebounds in top stocks like Apple, Nvidia, and Tesla.

Semiconductor stocks also saw gains, with Lam Research and Applied Materials up 2% following positive upgrades from KeyBanc Capital Markets, which highlighted their exposure to AI-related devices.

Notable Premarket Movers

What’s Next for the Markets?

As Wall Street eyes a strong finish to the week, focus will shift to upcoming earnings reports and economic data.

Friday’s housing starts and permits data exceeded expectations, showing resilience in the real estate market. Investors are also set to monitor the Federal Reserve’s industrial production report for clues about economic momentum.

While optimism over easing inflation has provided a boost to market sentiment, strategists warn that markets may remain rangebound as they await clearer signals on monetary policy and corporate earnings trends.