US stock futures edged higher on Friday, as investors awaited key inflation data while also grappling with new tariff threats that could impact Big Tech prospects. Despite recent volatility, futures indicated a modest rebound following a rough week for markets.
Stock Futures Rebound After Nvidia-Led Sell-Off
- S&P 500 (^GSPC) futures rose 0.4%.
- Nasdaq 100 (NQ=F) gained 0.2%, recovering slightly after a sharp tech sell-off led by Nvidia (NVDA) on Thursday.
- Dow Jones Industrial Average (YM=F) added 0.5%, signaling potential stability heading into the last trading day of February.
Despite these early gains, Wall Street remains cautious as fresh tariff threats and economic data fuel uncertainty.
Inflation Data Offers Some Relief
The January Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, met expectations:
📉 Core PCE (excluding food and energy) cooled to 2.6%, matching forecasts.
📊 This provides some relief after recent inflation concerns and economic slowdown fears.
However, investors remain wary about interest rate policy, as the Fed continues to assess inflation trends before making further rate decisions.
Trade War Tensions Return as China Vows Retaliation
Markets were also rattled by fresh trade tensions, as China threatened “all necessary measures” in response to Trump’s new tariff policies:
🔹 An additional 10% tariff on Chinese imports is set to take effect on Tuesday.
🔹 Trump has also pledged tariffs on Mexico, Canada, and the EU, escalating global trade uncertainty.
🔹 Beijing’s response raises concerns about a potential trade war revival, which could impact corporate earnings and global supply chains.
Markets on Track for a Tough Month
With February coming to a close, major indices are heading for sharp losses:
📉 Nasdaq Composite (^IXIC) down over 5% for the month
📉 S&P 500 (^GSPC) and Dow (^DJI) each down around 3%
⚠️ S&P 500 has suffered three 1%+ daily drops this week, highlighting market instability
Bitcoin Extends Losses in Crypto Sell-Off
Cryptocurrency markets continue to struggle, with Bitcoin (BTC-USD) plunging 7% to its lowest level since November.
📉 Bitcoin has now dropped 25% from its all-time high, as the broader crypto market faces increasing pressure.
Earnings Pressure: Dell and HP Slide
Tech earnings reports added to market unease, as leading hardware makers reported disappointing results:
- Dell (DELL) stock fell 2%, with investors worried about rising AI server costs.
- HP (HPQ) dropped 3%, despite meeting earnings expectations, signaling weak demand in the hardware sector.
Final Thoughts: Volatility Persists Amid Trade and Inflation Worries
While futures indicate a potential rebound, investor sentiment remains fragile due to:
🔹 Uncertainty around tariffs and trade policy
🔹 Inflation concerns and Fed interest rate decisions
🔹 Ongoing weakness in Big Tech and crypto markets
With February wrapping up on a volatile note, all eyes will be on economic data, corporate earnings, and geopolitical developments to determine whether markets can stabilize or face further turbulence in March.
