Pre-Market Optimism as Investors Eye Weekly Gains; Dip in Crude Oil Prices

U.S. index futures are trading higher in pre-market on Friday, following a previous session that ended lower, as the market reassesses expectations for Federal Reserve interest rate cuts in light of recent inflation data. Investors await further economic indicators, maintaining optimism for a slightly positive weekly close in the major indexes.

At 07:05 AM, the Dow Jones futures (DOWI:DJI) were up 48 points, or 0.12%. S&P 500 futures advanced 0.19%, and Nasdaq-100 futures gained 0.18%. The yield on 10-year Treasury notes was at 4.277%.

In the commodities market, West Texas Intermediate crude oil for April fell 0.44% to $80.89 per barrel. Brent crude oil for May dropped 0.46% to around $85.03 per barrel. Iron ore traded on the Dalian exchange fell 3.46% to $108.59 per metric ton.

Friday’s economic agenda kicks off with the release of February’s import and export prices at 8:30 AM by the Department of Labor. Concurrently, the Empire State manufacturing activity index for March will be released, also at 8:30 AM, by the New York Federal Reserve. At 09:15 AM, the focus shifts to February’s industrial production and capacity utilization data, which will be published by the Federal Reserve. Concluding the series of economic reports, at 10:00 AM will be the time for the preliminary reading of the March consumer sentiment index.

The Asia-Pacific stock markets closed mixed, influenced by the latest U.S. inflation data and monetary policy decisions in China. While most indexes fell due to reduced expectations for aggressive U.S. interest rate cuts, the Chinese markets stood out positively (+0.54%), driven by technology and automotive stocks. Additionally, the Chinese regulator promised increased market supervision, and the central bank maintained its medium-term lending rate, indicating interest rate policy stability.

European markets are slightly higher on Friday morning, despite concerns brought by recent U.S. inflation data. In the pan-European Stoxx 600, the automotive and telecommunications sectors lead the gains while domestic goods stocks declined. Shares of Vonovia (TG:VNA) are a negative highlight after the company announced a record annual loss, reflecting challenges faced by the real estate sector in Germany.

On Thursday, U.S. stock markets opened without a clear direction but soon succumbed to selling pressure, closing in the red despite an attempt at a recovery towards the end of the day. Concerns intensified after the release of a producer price report that exceeded expectations, fueling fears about the Federal Reserve’s future policy. Anxiety rose with the approach of the central bank’s next meeting, keeping investors on alert. The Dow Jones, S&P 500, and Nasdaq closed down 0.35%, 0.29%, and 0.30%, respectively.

For quarterly earnings, scheduled to present financial reports today are Jabil (NYSE:JBL), Embraer (NYSE:ERJ), Soho House (NYSE:SHCO), Townsquare Media (NYSE:TSQ), Telos Corp (NASDAQ:TLS), among others.

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