S&P 500 futures rose marginally on Friday following President Donald Trump’s decision to delay new reciprocal tariffs. Futures linked to the broad market index increased by 0.16%, while Dow Jones Industrial Average futures gained 41 points, and Nasdaq 100 futures edged up by 0.1%.
S&P 500 futures rise after Trump delays tariffs
During the regular trading session, the S&P 500 climbed 1.04%, closing at 6,115.07 points, marking the index’s largest one-day gain since January 15. The tech-heavy Nasdaq Composite rose 1.5% to 19,945.64 points, and the Dow Jones Industrial Average advanced 0.77% to 44,711.43 points. This uptick came after Trump signed a presidential memorandum on reciprocal tariffs but did not implement them immediately.
Investor sentiment was bolstered by the release of January’s producer price index and the consumer price index report from Wednesday, which indicated a softer reading that might suggest lower inflation pressure moving forward. The personal consumption expenditures (PCE) price index, which the Federal Reserve prefers, is expected to be released later this month.
Despite the day’s gains, Mark Malek, chief investment officer at Siebert, indicated that this relief may be short-lived. “The market will have pressure on Friday — there was not enough clear stimulus for the market to trade this way … nothing that would justify this late-day move,” he stated in an interview with CNBC. “Friday is going to be one of those days where people are going to try to figure out what this all means.”
The major indexes appear set to close the week higher, with anticipated gains of about 1.5% for the S&P 500 and 0.9% for the Dow. The Nasdaq has increased by 2.2% week to date.
Future trading reflected a cautious sentiment, as Dow Jones Industrial Average futures slipped 0.2%, and S&P 500 futures remained flat. Contracts on the tech-heavy Nasdaq 100 were also little changed following Thursday’s sharp gains. Market participants are absorbing a recent series of policy shifts from Trump, which included proposed tariffs on steel and aluminum and discussions regarding Ukraine peace talks.
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Investors received insight into consumer behavior with upcoming retail sales data expected on Friday. Pricing pressure remains a focus after two inflation reports earlier in the week impacted expectations for interest rate cuts. Pre-market trading saw significant gains for several companies, including Airbnb, which rose after beating analyst expectations, and GameStop, whose shares increased due to speculation of a move into crypto investment. Moderna is scheduled to report earnings on Friday.
Data released indicated an increase in U.S. producer prices for January, while key elements of the core PCE index remained benign or lower. Healthcare prices, which significantly influence the PCE, saw a modest decline of 0.06%. Following the report, yields on the 10-year U.S. Treasury bond fell sharply, signifying growing investor confidence in cooling inflation.
Notable stocks included Tesla, which increased by 5.9%, Nvidia rising 3.2%, and Apple moving up 2%, contributing to the S&P 500 nearing its record high from January 23. Jack Ablin, chief investment officer at Cresset Capital, remarked, “Equity investors are taking cues from the bond market.”
Stock activity on Thursday resulted in advancing issues within the S&P 500 outnumbering falling ones by a 3.7-to-one ratio. The S&P 500 recorded 36 new highs and 11 new lows, while the Nasdaq noted 124 new highs and 105 new lows.
In other market movements, Chevron’s shares rose 0.6% after the company announced plans to lay off up to 20% of its global workforce by the end of 2026. Conversely, Trade Desk saw a significant decline of 33% following a revenue forecast that fell below analyst estimates, while MGM Resorts International jumped 17% after surpassing fourth-quarter profit and revenue projections.
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