U.S. stock futures rose on Friday with the S&P 500 headed for its best week since April in a comeback from last week’s swoon induced by worries about a tighter Federal Reserve.
Dow Jones Industrial average futures rose 89 points, or 0.3%. S&P 500 futures gained 0.1% and Nasdaq 100 futures added 0.2%.
The S&P 500, which closed at a record Thursday, is up 2.4% for the week so far, 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‘s stock surged 12% in premarket trading, helping to boost sentiment for the Dow. The company after the bell reported earnings of 93 cents per share, far outpacing a Refinitiv consensus estimate by 42 cents per share. Revenue came in at $12.34 billion, topping the consensus forecast of $11.01 billion. Digital sales were up 41% since last year and 147% from two years ago.
Shares of the major U.S. banks popped after the Federal Reserve announced the industry could easily withstand a severe recession. The Fed, in releasing the results of its annual stress test, said the 23 institutions in the 2021 exam remained “well above” minimum required capital levels during a hypothetical economic downturn. The decision cleared the way for the banks to raise dividends and buy back more stock, which was suspended during the pandemic.
Investors will be watching for a key inflation indicator on Friday morning when the Commerce Department releases the core personal consumption expenditures index. Economists polled by Dow Jones are expecting prices rose 3.4% in May from a year earlier. Economists also estimate prices increased by 0.6% from April to May.
The index captures price movements across a variety of goods and services. It is also generally considered a wider-ranging measure for inflation as it captures changes in consumer behavior and has a broader scope than the Labor Department’s consumer price index.
On Thursday, the Dow Jones Industrial Average jumped 322 points and the S&P 500 reached a new record of 4,266.49 after gaining 0.6%.
The technology-heavy Nasdaq Composite rose to a fresh record of 14,369.71 as investors continued to pour into growth stocks. Cathie Wood’s flagship fund, ARK Innovation, rose 1.5% and went positive for the year.
President Joe Biden announced Thursday that the White House struck an infrastructure deal with a bipartisan group of senators. The lawmakers have worked for weeks to craft a roughly $1 trillion package that could get through Congress with support from both parties. The framework will include $579 billion in new spending on transportation like roads, bridges and rail, electric vehicle infrastructure and electric transit, among other things.
Shares of Caterpillar jumped 2.6% on optimism around an infrastructure deal on Thursday. The shares were higher by another 1% in premarket trading Friday.
On the flipside Friday, FedEx dipped 4% in premarket trading despite beating on the top and bottom lines of its earnings. FedEx also gave a strong yearly outlook.
Last week, the Dow fell 3.5% and the S&P 500 shed 1.9% as the Federal Reserve moved up its timeline for interest-rate increases.
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