BY COMFORT OGBONNA
U.S. stock index futures linked to the S&P 500 and the Nasdaq ticked higher on Friday, extending a rebound led by technology shares after a sharp selloff earlier in the week. Optimism around artificial intelligence-related stocks helped lift sentiment, although losses in Nike weighed on Dow futures following disappointing quarterly results tied to prolonged weakness in China.
Nike shares slumped more than 10% in premarket trading after the sportswear maker reported a second straight quarterly decline in gross margins and revealed that sales in China fell for the sixth consecutive quarter. The results underscored ongoing challenges in one of the company’s most important growth markets, raising concerns about demand recovery and pricing pressure. The sharp drop in Nike shares dragged on Dow futures, which slipped 31 points, or 0.06%, by 7:10 a.m. ET.
Broader markets showed modest gains. S&P 500 E-mini futures rose 8.5 points, or 0.12%, while Nasdaq 100 E-minis advanced 63.75 points, or 0.24%, reflecting continued strength in large-cap technology names. The move followed a strong session on Thursday, when U.S. stocks surged as upbeat forecasts from chipmaker Micron Technology reignited enthusiasm for AI-driven growth. That optimism helped reverse some of the recent pressure on tech stocks, which had faced concerns over stretched valuations and funding conditions.
Chipmakers and related stocks largely extended their gains on Friday. Nvidia was last up around 1.2%, while other megacap and growth stocks, including Tesla and Amazon, also traded higher in early action. The renewed interest in technology shares provided a counterbalance to lingering worries about the broader economic outlook.
Investor sentiment also drew support from recent inflation data showing U.S. consumer prices rose less than expected in November. Part of the softer reading was attributed to a government shutdown that delayed data collection until later in the month, when retailers were offering holiday discounts. Economists, however, cautioned that inflation could pick up again in December as seasonal effects fade.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said policymakers may be careful in drawing firm conclusions from the latest inflation report due to methodological uncertainties. Still, he noted that the overall batch of economic data this week does not prevent the Federal Reserve from moving closer to a neutral policy stance aimed at supporting growth.
Market participants continue to price in at least two 25-basis-point interest rate cuts next year, according to LSEG data, though the probability of a cut as early as January stands at about 24%. The Federal Reserve trimmed rates by 25 basis points last week to a range of 3.50% to 3.75%, but signaled that further reductions are unlikely in the near term as officials seek clearer signals from inflation trends and the labor market.
Later on Friday, investors will be watching the University of Michigan’s final reading on consumer sentiment for December, due at 10:00 a.m. ET, for further insight into household confidence and spending expectations.
Analysts also warned that markets could see heightened volatility due to “triple witching,” the quarterly event when stock options, stock index futures, and stock index options expire simultaneously. Such sessions are often marked by heavier trading volumes and sharper price swings.
Despite Thursday’s rebound, the main U.S. stock indexes remained on track for weekly losses after being hurt by the technology selloff earlier in the week. Even so, the S&P 500 has notched multiple record highs in 2025 and remains on course for a third consecutive annual gain, highlighting the market’s resilience amid shifting economic expectations.
Among individual stocks, Generac climbed more than 3% after Wells Fargo upgraded the power equipment maker to “overweight” from “equal weight.” Oracle jumped about 4.5% after ByteDance, the Chinese owner of TikTok, signed binding agreements to transfer control of the app’s U.S. operations to a group of investors that includes the cloud computing giant, boosting optimism about Oracle’s role in the deal.
Original article
Comments