Stock futures remained flat Thursday evening ahead of key economic data and Supreme Court decision
Fourth-quarter GDP and inflation reports are expected Friday with economists predicting 2.5% growth and 2.8% inflation
Federal Reserve officials remain divided on interest rate cuts, requiring more evidence of inflation cooling
Supreme Court ruling on Trump's tariffs could significantly impact market sentiment
Recent market performance shows the Nasdaq positioned to end a five-week losing streak
📖 Full Retelling
US stock futures remained largely unchanged Thursday evening as investors awaited crucial economic data releases and a potential Supreme Court ruling on President Donald Trump's tariffs, with futures tied to the Dow Jones Industrial Average shedding just 6 points, or 0.01%, while S&P 500 and Nasdaq 100 futures hovered near the flatline. The market's cautious stance reflects anticipation for Friday's economic indicators, including the fourth-quarter gross domestic product report which economists expect to show a 2.5% growth rate, following the third quarter's surprising 4.4% advance. Additionally, the personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, is due for release, with headline inflation projected at 2.8% year-over-year and core inflation at 3%. The Federal Reserve remains divided on monetary policy, with some officials prioritizing labor market support while others focus on inflation concerns. Despite a general downward trend in price increases, inflation still exceeds the central bank's 2% target. Recent meeting minutes indicate that several Fed officials require more evidence of cooling inflation before supporting further interest rate cuts. Market participants are also bracing for a potentially significant Supreme Court decision regarding the legality of Trump's tariffs under the International Emergency Economic Powers Act. Wall Street analysts anticipate a positive market reaction if the tariffs are invalidated, though expectations remain that the administration would seek alternative methods to reimpose them.
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to th...
Investors are waiting for key economic data that could influence monetary policy and corporate earnings outlook. The potential Supreme Court ruling on Trump tariffs could reshape trade costs for affected industries.
Context & Background
Upcoming release of Q4 GDP and PCE inflation data
Possible Supreme Court decision on Trump tariffs under the International Emergency Economic Powers Act
After-hours moves of major stocks such as Akamai and Newmont
Tensions between the U.S. and Iran affecting oil prices
What Happens Next
On Friday morning, the GDP and PCE reports will be published, providing insight into economic growth and inflation trends. If the Supreme Court rules in favor of the tariffs, markets may adjust to new trade cost expectations.
Frequently Asked Questions
What economic data is expected on Friday?
The Q4 GDP report and the PCE inflation gauge, including core PCE, will be released.
How could a Supreme Court ruling affect the market?
A ruling that reduces or eliminates Trump tariffs could lower trade costs for affected companies, potentially boosting their stock prices.
Why are after-hours moves important?
After-hours trading can set the tone for the next day's opening and reflect investor sentiment on recent earnings or guidance.
What impact could U.S.-Iran tensions have on markets?
Escalating tensions can drive oil prices higher, which may benefit energy stocks but increase inflationary pressures.
Original Source
Stock futures were little changed Thursday night ahead of the release of crucial economic data and a potential key ruling from the Supreme Court on President Donald Trump's tariffs. Futures tied to the Dow Jones Industrial Average shed 6 points, or 0.01%. S&P 500 futures and Nasdaq 100 futures hovered just below the flatline. Traders will get an update on the state of the economy Friday morning, with the release of the gross domestic product report for the fourth quarter. Economists polled by Dow Jones see real GDP gaining 2.5%. The 4.4% advance in the third quarter sharply surpassed estimates . The personal consumption expenditures price index report — the Federal Reserve's preferred inflation gauge — is also due. The headline reading is expected to show a 2.8% advance on a year-over-year basis, according to economists polled by Dow Jones. The core PCE, which excludes volatile and energy prices, is expected to have risen 3% over the prior 12 months. Fed policymakers are divided between officials who are worried about supporting the labor market and those who are more concerned about inflation. The pace of price increases has generally trended lower, but inflation is still ahead of the central bank's 2% mandate. Minutes from the January Fed meeting indicate that some officials will need to see more evidence that inflation is cooling before voting for additional interest rate cuts. Friday may also bring a highly anticipated Supreme Court decision , as many on Wall Street expect a ruling on the legality of Trump's tariffs under the International Emergency Economic Powers Act. Traders mostly believe the stock market will react positively if the duties are knocked down, even with expectations the White House will use other means to reapply them at another time. The Supreme Court, which doesn't divulge beforehand the cases it will rule on, also has decision days scheduled for next Tuesday and Wednesday. "We think the market is treading water right now waiting for its nex...
