US stock futures edged higher on Friday in the wait for a key inflation reading as fresh tariff threats added to uncertainty over Big Tech prospects.
Contracts on the S&P 500 (^GSPC) rose 0.4%, and the tech-heavy Nasdaq 100 (NQ=F) was up about 0.2% after suffering an Nvidia-led (NVDA) sell-off on Thursday. Dow Jones Industrial Average futures (YM=F) also added 0.5%.
The January reading of Personal Consumption Expenditures index did its part to soothe some anxiety after recent data revived concerns about a slowdown in the economy and uptick in inflation. Annual “core” PCE — which strips out food and energy prices and is the Federal Reserve’s preferred gauge of inflation — cooled to 2.6%, matching expectations.
CME – Delayed Quote•USD
5,888.00
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As of 9:01:44 AM EST. Market Open.
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Meanwhile, investors reeling from President Trump’s fast-paced trade policy overhaul had to grapple with fresh tensions after China vowed to respond with “all necessary measures.” Beijing’s threat came after Trump said an extra 10% tariff on Chinese imports would take hold on Tuesday. He has also pledged to follow through on new duties on Mexico and Canada, and to impose tariffs on the EU.
Markets are heading into the last trading day of February facing sharp weekly and monthly losses after suffering the buffets of tariff moves. The Nasdaq Composite (^IXIC) is on track to fall over 5% in February, while the S&P 500 (^GSPC) and Dow (^DJI) are eyeing drops of around 3%. Meanwhile, the benchmark S&P has seen daily drops of over 1% on three trading days this week.
The sell-off in bitcoin (BTC-USD) deepened as the token sank 7% to its lowest level since November. The cryptocurrency has dropped 25% from its record high amid a broader crypto rout.
On the earnings front, Dell’s (DELL) stock slipped 2% as its results late Thursday fanned concerns about higher AI server costs. Shares in hardware maker HP (HPQ) dropped 3% even as its earnings met expectations.
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Falling rates are not helping the stock market
The benchmark 10-year Treasury yield (^TNX) fell to a 2025 low this week, which, in theory, should have boosted the stock market, as bond returns appear less attractive and lower borrowing rates often lift earnings.
Instead, the market has stalled, with the S&P 500 (^GSPC) returning a meager 0.3% gain year to date.
Why Tesla’s stock has given up nearly all of its Trump election gains
Tesla (TSLA) shares have tumbled 30% this year and have wiped out nearly all of their post-Trump election gains. The stock is trading steady in premarket, following its 3% drop in Thursday’s tech sell-off.
Several factors are helping drive the retreat. Yahoo Finance’s Pras Subramanian reports:
Bitcoin falls below $80,000 for first time since Nov. 11
Bitcoin slid from an all-time high six weeks ago to the cryptocurrency’s lowest trading point in months. Insecurity around President Donald Trump’s tariff plans has pulled faith in the asset down alongside the world’s largest cryptocurrency hack, which caused investors to seek safe-haven commodities.
Duolingo Inc., a language learning platform, reported fourth quarter results that surpassed analyst expectations. However, stock in the company dropped 8% in after-hours trading.
Aerospace and defense company Rocket Lab stocks cratered 13% on soft guidance despite the company announcing better-than-expected revenue for the quarter.
SoundHound AI, specializing in voice artificial intelligence products, surpassed Wall Street’s fourth-= quarter expectations late Thursday and raised its forecast for the full year of 2025. Soundcloud AI stock soared 9% in after-hours trading.
