U.S. stock futures edge up ahead of the release of a crucial inflation reading which could play into how Federal Reserve policymakers see the path forward for interest rates this year. President Donald Trump also announces a new slate of tariffs, including duties on branded or patented pharmaceuticals. Media reports added that the Trump administration is weighing options to reduce the country’s reliance on semiconductor imports.
1. Futures tick up
U.S. stock futures pointed higher on Friday, with investors gearing up for the release of fresh inflation data and digesting a new tariff announcement from Trump.
By 03:02 ET (07:02 GMT),the Dow futures contract had risen by 73 points, or 0.2%, S&P 500 futures had climbed by 9 points, or 0.1%, and Nasdaq 100 futures had advanced by 16 points, or 0.1%.
The main averages on Wall Street dipped on Thursday, weighed down by hot economic data, including a decline in weekly jobless claims and an upward revision in second-quarter gross domestic product. The figures dented bets around the scope of potential additional Federal Reserve borrowing cost cuts over the rest of 2025, while rate-sensitive short-dated U.S. government bond yields higher. Yields tend to move inversely to prices.
In individual stocks, shares in Jabil sank despite the electronics component maker offering a better-than-anticipated profit and revenue forecast for its fiscal year 2026. Analysts flagged that Jabil’s returns, like semiconductor name Micron earlier this week, were not as strong as many had hoped, undermining some of the soaring enthusiasm around artificial intelligence.
2. PCE ahead
Attention now turns to the publication of the August personal consumption expenditures price index, which could offer an update on the trajectory of U.S. inflation and factor into how the Fed approaches rate decisions in its final two policy meetings of the year.
Economists anticipate that the underlying measure of PCE inflation will cool to 0.2% month-on-month and match July’s pace of 2.9% on an annualized basis. Fed policymakers often closely monitor this metric to judge the state of price gains in the world’s largest economy.
Officials at the central bank have stressed a need to calibrate rates in a way that balances the twin risks of sticky inflation and a slowing labor market. Traders are currently placing a roughly 88% chance of a 25-basis point Fed rate cut at its next gathering in October and a 62% probability of a similar drawdown in December, according to CME’s FedWatch Tool.
"Upside surprises in the final U.S. GDP numbers and jobless claims make it difficult for markets to agree on upcoming Fed cuts. A benign PCE reading on Friday won’t change that," analysts at ING said in a note, adding a monthly jobs report next week "should be more pivotal."
3. Trump’s drug tariff announcement
Shares in European and Asian drugmakers fell on Friday after Trump announced a new round of tariffs that included 100% duties on branded or patented pharmaceuticals.
Novo Nordisk, Roche, Novartis, and AstraZeneca all inched lower in Europe, while Samsung Biologics, SK Biopharmaceuticals and Sumitomo Pharma were among the laggards in Asia.
On Thursday, Trump outlined a package of levies due to take effect from October 1 which also featured a 25% duty on imported heavy-duty trucks as well as tariffs on kitchen cabinets and upholstered furniture. He said the measures were aimed at protecting domestic industry and national security.
In a note, analysts at Capital Economics said the announcement is "a reminder that, while country-level ’reciprocal’ tariffs are starting to take shape, product-specific tariffs remain a threat."
4. Chipmakers slip on reported U.S. move to reduce reliance on semiconductor imports
European and Asian technology stocks and chipmakers declined after a Wall Street Journal report stated that the U.S. administration is weighing options to reduce the country’s reliance on semiconductor imports by boosting local manufacturing.
The WSJ report said the White House is considering a new policy that would require U.S. tech firms to match their domestic semiconductor output with imports or face tariffs.
The proposed plan could hit foreign tech stocks by curbing U.S. demand for overseas semiconductors, pressuring margins, and adding to trade uncertainty.
Dutch lithography equipment manufacturer ASML’s shares edged down in early European trading, while other regional semiconductor players like ASM International and Infineon dipped by more than 1%.
In Asia, leading contract chipmaker Taiwan Semiconductor Manufacturing Co was flat after dropping as much as 2%. South Korea’s Samsung Electronics stock fell 3.3%, while SK Hynix (KS:000660) shares slumped 5.6%.
5. Gold steadies
Gold prices moved little, steadying after a retreat from record highs as fresh tariff measures in the U.S. kept traders largely biased towards safe havens.
Anticipation around the key PCE data also kept gold relatively well-bid. Stubbornly elevated inflation may give the Fed less impetus to cut interest rates.
Still, the yellow metal was sitting on weekly gains after notching a series of recent all-time peaks, bolstered partially by hopes for further Fed rate reductions this year. Bullion tends to perform better in an environment of lower borrowing costs.
Elsewhere, oil prices rose, putting them on track for a substantial weekly advance, as attacks on Russia’s energy infrastructure and a surprise decrease in U.S. crude inventories tightened the market outlook.
Source :
https://www.investing.com/news/economy-news/futures-inch-up-pce-data-ahead-trump-unveils-new-tariffs--whats-moving-markets-4256958
