Following the rally seen over the past few sessions, stocks may show a lack of direction in early trading on Friday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures nearly unchanged.
Traders may take a breather following the recent surge on Wall Street, which has lifted the major averages to new record highs.
The rally largely reflected a positive reaction to President Donald Trump’s decisive victory in the U.S. presidential election.
Trump’s return to the White House is expected to be positive for corporations and the U.S. economy, although there are some concerns about the effect planned tariff increases will have on inflation.
While some traders may look to cash in on the recent strength in the markets, others may be concerned about missing out on further upside.
Not long after the start of trading, the University of Michigan is due to release its preliminary report on consumer sentiment in the month of November. The consumer sentiment index is expected to inch up to 71.0 in November creeping up to 70.5 in October.
After moving sharply higher on Tuesday and Wednesday, stocks showed another strong move to the upside during trading on Thursday. With the continued advance, the Nasdaq and the S&P 500 reached new record closing highs.
The tech-heavy Nasdaq led the charge, surging by 285.99 points or 1.5 percent to 19,269.46, while the S&P 500 climbed 44.06 points or 0.7 percent to 5,973.10.
The narrower Dow, on the other hand, spent the day lingering near the unchanged line before closing down just 0.59 points at 43,729.34.
In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance on Friday. Japan’s Nikkei 225 Index rose by 0.3 percent, while China’s Shanghai Composite Index fell by 0.5 percent and Hong Kong’s Hang Seng Index slumped by 1.1 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has slid by 0.9 percent, the German DAX Index is down by 0.8 percent and the U.K.’s FTSE 100 Index is down by 0.6 percent.
In commodities trading, crude oil futures are tumbling $1.22 to $71.14 a barrel after climbing $0.67 to $72.36 a barrel on Thursday. Meanwhile, after surging $29.50 to $2,705.80 an ounce in the previous session, gold futures are slipping $4.90 to $2,700.90 an ounce.
On the currency front, the U.S. dollar is trading at 152.69 yen versus the 152.94 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0759 compared to yesterday’s $1.0805.
Business News
Futures Pointing To Roughly Flat Open On Wall Street
2024-11-08 13:39:12
