U.S. Futures Display Volatility Amid Economic Data Anticipation, Oil Prices Decline

On Friday morning, U.S. index futures showed volatility, reflecting the uncertainty of investors who seek to maintain the positive momentum of the market observed in the previous session, while they eagerly await the publication of the Producer Price Index (PPI) data.

At 05:37 AM, the futures of the Dow Jones (DOWI:DJI) fell by 33 points, or 0.08%. The S&P 500 futures rose by 0.22%, and the Nasdaq-100 futures increased by 0.59%. The yield rate of the 10-year Treasury bonds was at 4.267%.

In the commodities market, the West Texas Intermediate crude oil for March fell by 0.81%, to $77.40 per barrel. The Brent crude oil for April dropped by 0.97%, close to $82.05 per barrel.

The economic agenda of the United States for Friday starts at 08:30 AM with the release of the Producer Prices for January, where the consensus of LSEG forecasts an increase of 0.1% on a monthly basis and 0.6% on an annual basis. Also at 08:30 AM, the numbers on Housing Starts for January will be revealed. Next, at 10:00 AM, the Consumer Confidence index for February will be announced.

On Thursday, US stocks started undecided, but grew during the day, driven by the S&P 500 reaching a new record closing. The renewed optimism about interest rates followed a report of a drop in retail sales in January, while industrial production fell and unemployment benefit claims unexpectedly decreased. Gold and oil rose, boosting the corresponding sectors, while strength spread to stocks of computer hardware, steel, banks, and commercial real estate. The Dow Jones closed up by 348.85 points or 0.91% at 38,773.12 points. The S&P 500 rose by 29.11 points or 0.58% to 5,029.73 points. The Nasdaq advanced by 47.03 points or 0.30% to 15,906.17 points.

The Asian markets mostly closed higher on Friday, driven by the positive performance of Wall Street for the second consecutive day. The Hong Kong Hang Seng index led the gains with a jump of 2.48%, while the Japanese Nikkei approached a new all-time high, registering an increase of 0.86%. The South Korean Kospi also showed significant growth, rising by 1.34%, while the Australian ASX 200 had a more moderate gain of 0.69%. However, the Shanghai market remained closed due to a holiday.

The European markets are operating higher, registering their third positive session in a row. Investors are reacting positively to retail sales in the United Kingdom, which exceeded expectations, indicating an encouraging sign for the economy. Sales increased by 3.4% compared to the previous month, exceeding forecasts, marking the biggest monthly increase since April 2021, after a record decline in December.

On the front of quarterly earnings for Friday, scheduled to present financial reports are Arbor (NYSE:ABR), AdvanSix (NYSE:ASIX), Air Canada (USOTC:ACDVF), Cinemark (NYSE:CNK), Liberty Broadband (NASDAQ:LBRDA), TreeHouse (NYSE:THS), TC Energy (NYSE:TRP), Healthcare Realty (NYSE:HR), Vulcan Materials (NYSE:VMC), Portland General Electric (NYSE:POR), among others.