US stock futures rose Friday, with the S&P 500 heading for its best week since April as a comeback from last week’s swoon caused by worries over a more restrictive Federal Reserve.
The Dow Jones Industrial Average futures rose 89 points, or 0.3%. S&P 500 futures gained 0.1% and Nasdaq 100 futures gained 0.2%.
The S&P 500, which closed on a record Thursday, is up 2.4% this week, which would be its best gain since early April. The Dow is up 2.7% this week and the Nasdaq is up 2.4% since last Friday.
Nike stock rose 12% in pre-trading hours, which helped boost sentiment for the Dow. The company reported profits and revenues that exceeded Wall Street estimates. Digital sales have also increased by 41% since last year and by 147% compared to two years ago.
Caterpillar shares rose 2.6% on Thursday on optimism about an infrastructure deal. The shares were up another 1% in the pre-trading session on Friday.
On the flip side, FedEx was down 4% in pre-trading on Friday, despite outperforming it in gains and gains. FedEx also gave a strong outlook for the year.
Major US bank stocks rose after the Federal Reserve announced that the industry could easily weather a severe recession. The Fed announced when it released the results of its annual stress test that the 23 institutions in the 2021 test had remained “well above” the minimum capital requirement during a hypothetical economic downturn. The decision paved the way for banks to increase dividends and buy back more shares that were suspended during the pandemic.
Bank of America and Wells Fargo gained 1.4% and 2%, respectively, early on.
Investors will be on the lookout for a key inflation indicator on Friday morning when the Department of Commerce releases its core consumer spending index. Economists polled by Dow Jones expect prices to have risen 3.4% year over year in May. Economists also estimate that prices rose 0.6% from April to May.
The index tracks price movements across a wide range of goods and services. It is also generally viewed as a broader measure of inflation as it captures changes in consumer behavior and has a broader scope than the Department of Labor’s consumer price index.
On Thursday, the Dow Jones Industrial Average rose 322 points and the S&P 500 hit a new high of 4,266.49 after up 0.6%.
The tech-heavy Nasdaq Composite rose to a new record of 14,369.71 as investors continued to invest in growth stocks. Cathie Wood’s flagship fund, ARK Innovation, gained 1.5% and performed well for the year.
President Joe Biden announced Thursday that the White House had signed an infrastructure deal with a non-partisan group of senators. Legislators have worked for weeks to put together a roughly $ 1 trillion package that could get through Congress with support from both parties. Among other things, the framework provides for new expenditures of 579 billion US dollars for transport such as roads, bridges and rail, the infrastructure for electric vehicles and electric mass transit.
Last week the Dow fell 3.5% and the S&P 500 lost 1.9% as the Federal Reserve extended its rate hike schedule.
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