U.S. stock index futures pointed to a moderately higher open Friday as investors positioned for the August Consumer Price Index (CPI) report, with sentiment stabilizing after a bruising week driven by surging energy costs, a global bond sell-off and renewed Middle East tensions.
S&P futures were up 0.52%, Dow futures added 0.50% and Nasdaq futures rose 0.55% in early trade, clawing back from Thursday's decline that pushed equities lower for a fourth consecutive session. The recovery attempt comes as there was a let up in 10-year Treasury yield, which climbed on Thursday to 4.96%, the highest since 2023 and on the cusp of the psychologically key 5% level, afterhot U.S. PPI data and the European Central Bank's hawkish rate hike Thursday .
Crude oil pulled back sharply, offering some relief to inflation-sensitive assets. Brent crude traded below $105 a barrel after hitting its highest level since May , while WTI also slid. Bitcoin retreated back below $77,000 and gold futures softened as the dollar held firm.
Premarket Snapshot
| Instrument | Level | Change |
|---|---|---|
| S&P 500 Futures | 7,643.75 | +0.75% |
| Dow Futures | 52,405.00 | +0.60% |
| Nasdaq 100 Futures | 29,334.00 | +0.68% |
| US 10-Year Yield | 4.938% | slightly off the highest since 2023 |
| WTI Crude (Oct) | $99.12 | -3.28% |
| Brent Crude | $103.96 | -3.41% |
| Gold Futures | $4,388.20 | -0.43% |
| Dollar Index (DXY) | 99.15 | +0.11% |
| VIX | 17.09 | -4.21% |
| Bitcoin | $77,081.44 | -0.98% |
The Nasdaq E-mini (NQ) contractNQ shows a strong bearish positioning divergence. Profitable traders are only 19% long, meaning 81% are short, compared with 49% long among unprofitable traders, according to MarketFramework Positioning Edge tool. That leaves profitable traders 30 percentage points more short, suggesting the traders currently making money are positioned for further downside while losing traders remain heavily exposed to the long side.
With the tool flagging “extreme bearish divergence,” a sustained break below recent intraday support could strengthen the downside signal; conversely, a sharp move higher that forces profitable shorts to cover could create a squeeze.
Macro Data Preview
The day's focal point is the August CPI report at 8:30 a.m. ET, which lands after August wholesale prices rose roughly as expected, up 0.4% for headline PPI and 0.2% for core, in line with consensus for headline and just under the 0.3% average core estimate . The CPI report could provide fresh signals on the Federal Reserve's interest rate path ahead of a monetary policy meeting next week . A hotter-than-expected print risks reviving bets on a September Fed hike.
US Stocks in Focus
- Oracle (ORCL) — Shares surged in premarket after the software giant's fiscal Q1 earnings report, with the company posting stronger-than-expected cloud revenue growth in after-hours trading Thursday, providing a bright spot amid an otherwise weak tape.
- Other stocks moving on after-the-bell earnings from Thursday are Adobe (ADBE), Zumiez (ZUMZ) and RH (RH)
- SoftBank Group — U.S.-listed shares tracked overseas weakness after shares of multinational investment holding firm SoftBank Group, an investor of OpenAI, fell almost 4% in Tokyo.
- Kroger (KR) — In focus with expected earnings from Kroger (KR) due before the open.
- Energy names — Exxon, Chevron and oilfield services stocks likely to open softer as crude retreats from multi-month highs.
Key Technical Levels to Watch
- S&P 500: Support at the recent 7,560 pivot and Wednesday's close near 7,590, resistance overhead into 7,800.
- 10-Year Treasury Yield: The 5.00% threshold remains the critical psychological line; a decisive break could accelerate equity de-risking.
- Brent Crude: $110 acted as near-term resistance this week; support seen at $100–$102 following Friday's pullback.
- Bitcoin: $77,000 is near-term support; a break opens the door to the $75,000 area.
Asian Markets
Asian equities sold off sharply Friday. MSCI's Asia Pacific Index tumbled 1.21% as a broad-based retreat swept through regional benchmarks across Japan, South Korea, Australia, and Taiwan . Japan's Nikkei 225 dropped 1.9% to 64,011.34. Shares of multinational investment holding firm SoftBank Group, an investor of OpenAI, fell almost 4%.
South Korea's Kospi lost 1.8% to 6,909.91. Samsung Electronics slid 3.5%, while memory chipmaker SK Hynix declined 2.2%. Hong Kong's Hang Seng dipped 0.6% to 24,805.63. The Shanghai Composite index was down 1.2% to 3,888.11 .
The regional bond market echoed the pressure in U.S. Treasuries. Asian government bonds followed Treasuries lower. Australia's three-year yield jumped as much as 20 basis points to 5.06%, its highest level since 2011, while New Zealand's two-year yield climbed 25 basis points .
European Markets: Early Trend
European equities are attempting a rebound after Thursday's slide. The pan-European STOXX 600 was up 0.5% at 639.13 by early afternoon trading, while other major regional bourses also traded higher. Notwithstanding Friday's gains, European stocks looked on course for their worst weekly performance since April as high bond yields and fears about aggressive interest rate hikes tempered sentiment ahead of key U.S. inflation data . The bounce follows Thursday's close at a two-month low after the European Central Bank (ECB) raised interest rates and warned of higher inflation as energy prices soar in the wake of a prolonged Middle East conflict .
