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US stock futures rose on Friday, set to bounce back from a brutal day of losses as the risk of a government shutdown eased but investors stayed on watch for the next move in an escalating trade war.
S&P 500 futures (ES=F) climbed roughly 0.9%, after the benchmark index sank on Thursday to close in correction territory. Contracts on the tech-heavy Nasdaq 100 (NQ=F) jumped 1.1%, while those on the Dow Jones Industrial Average (YM=F) moved up around 0.6%.
Stocks have had a rough week as uncertainty over President Trump’s fast-moving tariff shifts whipsawed markets and overshadowed encouraging signals about the economy. All three major gauges are headed for weekly losses around 4% after the S&P 500 (^GSPC) joined the Nasdaq Composite (^IXIC) in correction.
It took less than a month for the benchmark to fall into correction, the fifth-fastest such move in the past 75 years, according to Ritholtz Wealth Management.
CBOT – Delayed Quote USD
As of 9:13:21 AM EDT. Market Open.
YM=F ES=F NQ=F
But Wall Street spirits brightened as Senate Democratic leader Chuck Schumer backed off a threat to block a funding bill aimed at averting a government shutdown at the weekend.
At the same time, gold (GC=F) broke above $3,000 an ounce for the first time amid warnings about the economic damage from Trump’s tariffs. On Thursday, Trump said he didn’t plan to “bend at all” in the escalating round of tit-for-tat tariffs with America’s biggest trading partners.
Read more: The latest on Trump’s tariff plans
Concerns that the US economy is showing signs of strain have receded after data this week showed inflation heading in the direction desired by the Federal Reserve, which holds its policy meeting next week. But the details of that data could give policymakers pause for thought.
On Friday, University of Michigan’s consumer sentiment survey will provide a snapshot of how consumers are faring with new tariffs amid stubborn inflation.
LIVE 8 updates
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Elon Musk’s Tesla says it could be targeted by retaliatory tariffs
Tesla (TSLA) shares have fallen recently, wiping out post-Election Day gains, and closed down nearly 3% on Thursday. Tesla warned that retaliatory tariffs could hurt its operations and urged the US to rethink trade policies.
CNN reports:
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Stock funds see biggest weekly outflow this year: BofA
Reuters reports:
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China stocks jump to hit multi-month high
China’s stock benchmark closed at its highest since mid-December amid growing optimism for more Beijing policy support and a rising appetite for Chinese names from global investors.
Shanghai’s CSI 300 jumped 2.4% as investors dived into consumer stocks. Meanwhile, the Hang Seng China Enterprises index (^HSCE) in Hong Kong finished with a 2.7% gain.
China’s authorities are seen as poised to bring in policies to boost consumer spending and confidence, after the financial regulator laid out plans to encourage banks to offer loans.
But Beijing appears to be struggling to find ways to meet its spending targets, even as Elon Musk-led DOGE in the US shoots for $1 trillion in spending cuts. The risk of economic damage from President Trump’s tariff hikes also looms large.
At the same time, recession worries sparked by that trade war are driving global investors to take cover in an unusual haven, Chinese stocks, analysts suggest. The stocks are trading 30% under their 2021 highs, while the 17% gain for Hong Kong’s Hang Seng (^HSI) since Trump’s election far outshines the S&P 500’s (^GSPC) 9% drop
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This S&P 500 correction is the fifth-fastest since 1950
Yahoo Finance’s Josh Schafer writes in today’s Morning Brief:
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Tesla stock rises after report of cheaper Chinese Model Y
Tesla (TSLA) shares moved up 1.7% in premarket trading, clawing back a chunk of Thursday’s 3% loss after a report that the EV maker is planning a lower-cost Model Y for China.
The smaller version of Tesla’s best-selling model will cost at least 20% less to manufacture, Reuters reported.
The plan is a bid to regain market share in China, where Tesla has lost a lot of ground. Its shares have dropped over 30% in the past month as sales slid in Europe, too, and amid dismay at CEO Elon Musk’s role on President Trump’s team. The stock has erased all its post-election gains.
Meanwhile, Trump’s tariff policy is causing concern at Tesla, which has signaled it’s worried that an escalating tit-for-tat trade war will ramp up its manufacturing costs.
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Good morning. Here’s what’s happening today.
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Gold reaches record heights
Gold (GC=F) struck a new record high Friday as haven demand is pushed by tariff uncertainty and mounting trade war tensions.
Reuters reports:
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Trending tickers in after-hours trading
Ulta Beauty (ULTA)
The stock of beauty retailer Ulta Beauty surged over 6% after the company surpassed expectations in its earnings performance. Ulta rannounced earnings of $8.46 per share and revenue of $3.49 billion, exceeding analysts’ forecasts of $7.12 per share and $3.46 billion in revenue.
Rubrik (RBRK)
Stock in the data management company jumped 16% following an exceptional fourth-quarter report. Rubrik generated $258 million in revenue, exceeding analysts’ estimates of $233 million.
DocuSign (DOCU)
DocuSign saw a rise of 12% after posting stronger-than-expected fourth-quarter earnings. The electronic signature provider earned an adjusted 86 cents per share, slightly above analysts’ expectations of 85 cents. Revenue totaled $776 million, surpassing the anticipated $761 million.
