The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to regain ground following the sell-off seen over the course of the previous session.

Traders may once again look to pick up stocks at reduced levels following recent weakness, which saw the Nasdaq plunge to a nearly four-month closing low in Thursday’s session.

The Dow and the S&P 500 also ended the previous session at their lowest closing levels in over a month amid a slump by shares of Nvidia (NASDAQ:NVDA).

Early buying interest may also be generated in reaction to a Commerce Department report showing closely watched readings on U.S. consumer price inflation increased in line with economist estimates in the month of January.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January, matching the increase seen in December as well as economist estimates.

The annual rate of growth by the PCE price index slowed to 2.5 percent in January from 2.6 percent in December, which also matched expectations.

Excluding food and energy prices, the core PCE price still climbed by 0.3 percent in January after edging up by 0.2 percent in December. The increase by core prices was also in line with estimates.

The annual rate of core PCE price growth slowed to 2.6 percent in January from 2.9 percent in December, which also matched expectations.

The Federal Reserve’s preferred readings on consumer price inflation were included in the Commerce Department’s report on personal income and spending.

However, traders may remain reluctant to get back into the markets amid lingering concerns about a global trade war.

After President Donald Trump threatened to impose an additional 10 percent tariff on imports from China as early as next Tuesday, China vowed to take “all necessary countermeasures and defend its legitimate rights and interests.”

Stocks once again failed to sustain an early upward move and came under pressure over the course of the trading day on Thursday. Unlike the previous session, however, the major averages extended the pullback as the day progressed, closing sharply lower.

The tech-heavy Nasdaq posted a particularly steep loss, plunging 530.84 points or 2.8 percent to a nearly four-month closing low of 18,544.41.

The S&P 500 also slumped 94.49 points or 1.6 percent to a one-month closing low of 5,861.57, while the narrower Dow fell 193.62 points or 0.5 percent to a one-month closing low of 43,239.50.

Stocks initially benefited from a positive reaction to earnings news from Nvidia, which reported better than expected fourth quarter results and provided upbeat revenue guidance for the current quarter.

However, shares of Nvidia subsequently tumbled by 8.5 percent as the AI darling and market leader also warned about increase global competition.

The sell-off on Wall Street also came as President Donald Trump clarified that previously paused 25 percent tariffs on imports from Mexico and Canada will go into effect on March 4th.

Trump said an additional 10 percent tariff on imports from China will also be imposed on that date, claiming drugs are pouring into the U.S. from Mexico and Canada and that a large percentage of the drugs are supplied by China.

The president also said in a Truth Social post that the April 2nd date for reciprocal tariffs on other U.S. trade partners will “remain in full force and effect.”

Traders were also reacting to the latest batch of U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended February 22nd.

A separate report released by the Commerce Department showed durable goods orders surged by much more than expected in January, although the growth was largely due to a spike in volatile orders for transportation equipment.

Semiconductor stocks saw substantial weakness on the day, resulting in a 6.1 percent nosedive by the Philadelphia Semiconductor Index. The index plunged to its lowest closing level in over five months.

Considerable weakness was also visible among computer hardware stocks, with the NYSE Arca Computer Hardware Index plummeting by 5.1 percent

Gold stocks also moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 3.8 percent.

Utilities, software and airline stocks also saw significant weakness on the day, moving lower along with most of the other major sectors.

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