Dow Set to Open Down Ahead of PCE Inflation Data
Stock futures were sliding on Friday, ahead of key inflation data that will help investors to figure out if the Federal Reserve will cut interest rates next month.
Futures tracking the Dow Jones Industrial Average fell 83 points, or 0.2%, and S&P 500 futures slipped 0.1%. Both indexes hit new highs on Thursday, shrugging off a tepid earnings forecast from chip maker Nvidia.
Contracts tied to the Nasdaq 100 were down 0.2%, with the tech-heavy gauge on the brink of a record of its own.
The key event driving markets on Friday is likely to be the release of the personal consumption expenditures price index, which is the Fed’s preferred measure of inflation. Forecasters polled by The Wall Street Journal believe the PCE rose 2.6% over the 12 months through July, which would be the same as the prior month.
Investors will also be keeping an eye on the legal battle between President Donald Trump and Fed Gov. Lisa Cook. On Thursday, Cook sued to block Trump’s recent move to dismiss her, setting up a major showdown between the White House and the central bank.
The yield on the benchmark 10-year U.S. Treasury note climbed 1 basis point to 4.22% on Friday. The dollar was up 0.2% against a weighted basket of its peers, and gold slid 0.2% to $3,467 an ounce.