Stock Market Today: Stocks bounce with Fed inflation data in focus
The S&P 500 is negative for the year, and just 1% higher than it was on Election Day.
U.S. equity futures moved higher in early Friday trading, while the dollar jumped to multi-week highs and Treasury yields retreated, as global markets reacted to President Donald Trump's renewed tariff threats while American markets look to claw back losses from yesterday's selloff.
The S&P 500 fell into negative territory for the year last night as markets slumped in the wake of disappointing economic data and a retreat in risk assets following the President's confirmation that tariffs on goods from Canada and Mexico, as well as added duties on imports from China, would come into effect on March 4.
The tariff strategy, paired with the ongoing overhaul of the federal workforce and weakening metrics in the world's biggest economy, is weighing on risk markets heading into the final day of February trading, with benchmark 10-year Treasury note yields falling to 4.244%, the lowest since December.
Bitcoin prices, seen as a proxy for President Trump's post-election support, fell another 5.8% in overnight trading and were last marked at just under $80,000, pegging its peak-to-trough decline at around 25%.
The U.S. dollar index, meanwhile, rose 0.21% to trade at 107.375 against a basket of its global peers, the highest in more than two weeks and an indication of cautious sentiment heading into the Friday session.
Beyond trade, Trump’s refusal to commit to a security backstop in Ukraine added another layer of geopolitical uncertainty," said Boris Kovacevic, global macro strategist at Convera.
"Still, conviction around a sustained dollar rally is fading as tariff fatigue and growth concerns weigh on sentiment," he added. "Traders remain cautious despite the elevated trade uncertainty and lack of policy clarity."
Related: US economy faces hit as uncertainty grips markets
Friday's focus, in that respect is likely to shift to the PCE Price Index release at 8:30 am Eastern time, with investors looking for a modest easing in the Fed's preferred inflation gauge over the month of January.
The Atlanta Fed will also update its GDPNow forecasting tool later in the morning session.
Heading into the start of the trading day on Wall Street, futures tied to the S&P 500, which is now down 0.12% for the year and is just 1% higher than it was on Election Day, are priced for a 23 point opening bell gain.
Futures tied to the Dow Jones Industrial Average, meanwhile, are indicated 145 points higher with the tech-focused Nasdaq priced for a 60 point bump.
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In overseas markets, world stocks fell to the lowest level in a month, with the MSCI World index suffering its worst week since December, thanks to the firmer U.S. dollar and renewed tariff threats.
Europe's Stoxx 600 was marked 0.35% lower in Frankfurt, with the FTSE 100 edging 0.21% higher in London.
Overnight in Asia, selling in Hong Kong and mainland China dragged the MSCI Asia ex-Japan index 2.39% lower into the close of trading, while the Nikkei 225 ended 2.88% lower in Tokyo.
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