U.S. Stocks May Regain Ground As Inflation Data Matches Estimates

Following the sell-off seen over the course of the previous session, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.3 percent.

Traders may once again look to pick up stocks at reduced levels following recent weakness, which saw the Nasdaq plunge to a nearly four-month closing low in Thursday’s session.

The Dow and the S&P 500 also ended the previous session at their lowest closing levels in over a month amid a slump by shares of Nvidia (NVDA).

Early buying interest may also be generated in reaction to a Commerce Department report showing closely watched readings on U.S. consumer price inflation increased in line with economist estimates in the month of January.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January, matching the increase seen in December as well as economist estimates.

The annual rate of growth by the PCE price index slowed to 2.5 percent in January from 2.6 percent in December, which also matched expectations.

Excluding food and energy prices, the core PCE price still climbed by 0.3 percent in January after edging up by 0.2 percent in December. The increase by core prices was also in line with estimates.

The annual rate of core PCE price growth slowed to 2.6 percent in January from 2.9 percent in December, which also matched expectations.

The Federal Reserve’s preferred readings on consumer price inflation were included in the Commerce Department’s report on personal income and spending.

However, traders may remain reluctant to get back into the markets amid lingering concerns about a global trade war.

After President Donald Trump threatened to impose an additional 10 percent tariff on imports from China as early as next Tuesday, China vowed to take “all necessary countermeasures and defend its legitimate rights and interests.”

Stocks once again failed to sustain an early upward move and came under pressure over the course of the trading day on Thursday. Unlike the previous session, however, the major averages extended the pullback as the day progressed, closing sharply lower.

The tech-heavy Nasdaq posted a particularly steep loss, plunging 530.84 points or 2.8 percent to a nearly four-month closing low of 18,544.41.

The S&P 500 also slumped 94.49 points or 1.6 percent to a one-month closing low of 5,861.57, while the narrower Dow fell 193.62 points or 0.5 percent to a one-month closing low of 43,239.50.

In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Friday. Japan’s Nikkei 225 Index dove by 2.9 percent, while Hong Kong’s Hang Seng Index plummeted by 3.3 percent.

Most European stocks have also moved to the downside on the day. The French CAC 40 Index and the German DAX Index are both down by 0.6 percent, although the U.K.’s FTSE 100 Index has once again bucked the downtrend and risen by 0.3 percent.

In commodities trading, crude oil futures are sliding $0.80 to $69.55 a barrel after surging $1.73 to $70.35 a barrel on Thursday. Meanwhile, after plunging $34.70 to $2,895.90 an ounce in the previous session, gold futures are tumbling $27.80 to $2,868.10 an ounce.

On the currency front, the U.S. dollar is trading at 150.75 yen versus the 149.81 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0409 compared to yesterday’s $1.0388.

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