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U.S. stock futures rose on Friday, boosted by outsized gains from tech heavyweights Alphabet and Microsoft, as investors awaited a crucial inflation reading before the opening bell and held on to the market's modest advance. market during the week.
Updated at 7:30 amEDT
Fed up?
Much chatter in the market this morning related to a Wall Street Journal article suggesting that “former Trump administration officials and other supporters of the presumptive Republican nominee” are drawing up plans to curb the independence of the Federal Reserve and put the president in charge. center of future political decisions. .
The Federal Reserve first gained its independence from the Treasury through the “Federal Reserve-Treasury Agreement” in 1951, in which President Harry Truman appointed Treasury Undersecretary William McChesney Martin as the first independent chairman.
<blockquote class="twitter-tweet”>
Donald Trump's allies are quietly drafting proposals that would try to erode the Federal Reserve's independence if the former president wins a second term. https://t.co/iynLbjsHgx
– Jared Malsin (@jmalsin) twitter.com/jmalsin/status/1783815331250590131?ref_src=twsrc%5Etfw”>April 26, 2024
stock market today
stocks closed lower on Thursday, with the S&P 500 falling about 0.5%, after Commerce Department data showed a slowdown in first-quarter GDP, which was estimated at 1.6%. , with a notable increase in underlying inflationary pressures.
The data sparked another setback in bets that the Federal Reserve would unveil its first interest rate cut later this year. CME Group's FedWatch now suggests no more than a 44% chance at any of the central bank's fall meetings.
Related: Slowing US growth, with inflation picking up, raises early risks of stagflation
However, tech gains after the close are likely to reverse those declines heading into the final day of the trading week and the close of the month.
Alphabet (GOOG) surged in overnight trading after Google's parent company posted better-than-expected first-quarter earnings, a strong ai-related outlook and revealed its first dividend.
In fact, the stock's 11.6% gain could push the tech giant past the $2 trillion valuation mark if it stays open.
microsoft (MSFT) Shares also moved, rising 4% in premarket trading, after the world's most valuable company beat Wall Street forecasts for its fiscal third quarter, while also forecasting strong earnings for its computing division. in the cloud for the three months ending in June.
On the negative side, chipmaker Intel (INTC) fell 7.3%, a move that would extend the stock's decline in 2024 to around 35%, after the chipmaker posted weaker-than-expected first-quarter earnings and a subdued revenue outlook.
ExxonMobil (XOM) Shares fell 1.9% after the oil major posted lower-than-expected first-quarter earnings of $2.06 per share, thanks in part to weakening refining margins. Chevron, smaller rival (CLC) changed little after beating Wall Street profit forecasts thanks to higher production volumes.
However, big tech gains are likely to provide a solid boost to the Nasdaq, which is up 2.15% for the week, with futures suggesting a 193-point gain for the tech-focused benchmark.
The broader S&P 500, which is up 1.64% for the week, is 39 points higher, and the Dow Jones Industrial Average is forecast to advance 40 points.
Investors will first have to navigate a key inflation reading before the opening bell, with the Bureau of Economic Analysis releasing its March PCE inflation report on Friday, April 26.
Analysts expect underlying and headline readings of 2.6%, up from 2.8% and 2.5% respectively in February. Any faster reading, tied in part to the underlying pressures seen in this week's GDP data, could quickly reverse the market's initial gains.
Benchmark 2-year Treasury yields were steady at 4.991% at the start of the New York trading session, with 10-year bonds pegged at 4.690%.
The US dollar index, which tracks the greenback's performance against a basket of six global currencies, rose 0.06% to 105.667.
More Wall Street analysts:
- Analyst reveals new Nike price target ahead of big summer for sports
- Analysts weigh in on Google parent Alphabet shares after cloud event
- Analysts Renew Disney Stock Price Target After Proxy Fight
In overseas markets, Europe's Stoxx 600 rose 0.62% in early trading in Frankfurt, following the biggest earnings week of the year, while Britain's FTSE 100 rose 0.33% in London.
Overnight in Asia, the Bank of Japan left its key policy rates unchanged after a two-day meeting in Tokyo, but raised its inflation forecast for the current financial year to 2.8% from 2.4%.
The Nikkei 225 closed up 0.81% on the session, as the yen remained stuck at a 1990 low of 156.76 against the US dollar, and technology stocks led the session's gains. The MSCI regional benchmark excluding Japan rose 0.79% at the close of trading.
Related: A veteran fund manager picks his favorite stocks for 2024
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