Stock Futures Climb Amid Inflation Data, Market Uncertainty Persists

NEW YORK, NY — Stock futures rose on Friday as traders processed the latest inflation data, though the major indexes appeared set for a difficult week and month.

Dow Jones Industrial Average futures advanced by 224 points, or 0.5%, while S&P 500 futures climbed 0.3%, and Nasdaq-100 futures increased by 0.2%.

The Commerce Department’s Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, aligned with expectations. PCE rose 0.3% in January and 2.5% year-over-year. Core PCE, which excludes food and energy prices, also showed a 0.3% month-over-month increase and a 2.6% annual rise, consistent with Dow Jones consensus estimates.

Despite these figures, market sentiment remained fragile as investors dealt with concerns regarding potential tariffs proposed by President Donald Trump and faced mixed economic signals. On Thursday, Nvidia shares plummeted by 8.5% following disappointing gross margin figures, with the stock dropping another 1.8% in premarket trading on Friday.

The Nasdaq is notably the underperformer this month, down approximately 5.5% in February and 5% this week, on track for its worst month since September 2023. The S&P 500 has dropped 2.5% this week and around 3% in February, eyeing its largest weekly decline since September 2024 and its worst month since April 2024. Meanwhile, the Dow experienced a relatively modest decline of 0.4% this week and nearly 3% for the month.

The mood was further dampened as stocks continued to extend losses. Nvidia saw a 2% decline in premarket trading, reflecting growing concerns over shrinking margins despite a narrow revenue beat. China-related equities faced challenges after Beijing issued warnings against Trump’s proposed 10% tariff on Chinese goods. Alibaba‘s stock fell over 4%, while PDD Holdings and Nio also dropped nearly 4%. Li Auto sank around 5%.

Additionally, Peloton experienced a nearly 7% decline after its fourth-quarter revenue missed estimates. Conversely, Autodesk reported a 1% increase in stock price owing to stronger-than-expected earnings, despite announcing layoffs. Rocket Lab’s stock faced a significant drop of over 16% due to weak guidance, and Duolingo fell 9% after missing its EBITDA forecast.

NetApp lost 15% following disappointing revenue figures, while Logitech International fell more than 3% amid a downgrade from Bank of America. Walgreens faced a 3% decrease after Deutsche Bank downgraded its stock to ‘sell.’

As February approaches its conclusion, traders are preparing for a volatile close. The focus for next week will shift to economic indicators, including the ISM manufacturing data and the February jobs report, which could provide fresh insights into the Federal Reserve’s future moves.

Geopolitical tensions, particularly surrounding U.S.-China trade relations, remain a wildcard that could affect market stability. For now, investors are exercising caution as they seek clarity on inflation, potential tariffs, and overall consumer health.