Futures edge higher with all eyes on Trump inauguration
Business
Futures edge higher with all eyes on Trump inauguration
(Reuters) - US stock index futures edged up on Friday, with the S&P 500 and the Dow looking set to log their biggest weekly advances since November, while investors awaited a wave of policy changes under the incoming Trump administration.
At 5:33 a.m. ET, Dow E-minis were up 127 points, or 0.29%, S&P 500 E-minis were up 19.75 points, or 0.33%, and Nasdaq 100 E-minis were up 90 points, or 0.42%.
Better-than-expected earnings from major banks and signs that underlying inflation was cooling have prompted risk-taking on Wall Street this week, putting the benchmark S&P 500 and the blue-chip Dow on track to log their steepest weekly rises since the US election week.
Also aiding risk sentiment was a dip in yields on longer-dated bonds that had touched more than 10-month highs earlier in the week. The yield on the benchmark 10-year note is now at a more than one-week low at 4.6%.
President-elect Donald Trump is expected to take over the White House on Monday and investors will be on edge for any insights into his plans on tax cuts, tariffs, loose regulations, and immigration at his inauguration speech, which analysts widely expect could boost the economy.
US stocks ended lower on Thursday as investors parsed the latest corporate earnings and economic data, and Big Tech stocks weighed on the Nasdaq.
The S&P 500 has gained nearly 3% to date since Election Day.
However, concerns prevail that his plans on tariffs and immigration could spark a trade war and fresh price pressures at a time when the economy is already strong, which could force the Federal Reserve to stave off further monetary policy easing.
According to data compiled by LSEG, traders expect the central bank to leave interest rates on hold at its meeting later this month and see the first cut coming in June. They had all but priced out any rate cuts for 2025 earlier in the week.
Before markets open, investors will assess data on building permits, housing starts, and industrial production for December, which could help gauge the health of the world's largest economy.
Eyes are also on developments around the ceasefire deal to the Middle East conflict, with the Israeli cabinet due to give final approval, following concerns the accord may be delayed.
