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US stocks fluctuated before the bell on Friday, poised for weekly losses after deficit worries pushed up Treasury yields as President Trump’s giant tax bill forged ahead.
Futures on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) swung between small gains and losses, and were last roughly 0.2% lower. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also wobbled, falling 0.2% as stocks continued Thursday’s lack of progress.
All three major gauges are on track for a losing week, with the S&P 500 (^GSPC) and the Dow (^DJI) eyeing a drop of around 2%, and the Nasdaq Composite headed for a 1.5% loss.
Markets are still weighing the economic impact of Trump’s revised tax-and-spending bill, which cleared a key hurdle in the House vote for approval.
Fears that it could boost the US deficit by trillions have stoked a surge in longer-dated Treasury yields, already in high focus after a Moody’s downgrade. The 30-year yield (^TYX) held above the key level of 5% on Friday, having risen to highs not hit since the financial crisis.
Next week, Wall Street will be counting down to Nvidia (NVDA) earnings, which are set for Wednesday after the bell.
This year, the chip giant has found itself in the crosshairs of Trump’s fast-moving trade policy as well as debates in Big Tech over costly AI investments. Nevertheless, options traders expect a lower level of volatility from Nvidia shares after this earnings report compared to recent quarters.
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Asian markets rise with investors digesting the US and China resuming trade talks
Asian markets mostly advanced overnight Thursday as investors weighed regional economic data and fresh diplomatic signals between the US and China.
Japan’s Nikkei 225 (^N225) rose 1% with the government recording core inflation at 3.5%, the highest in over 2 years.
South Korea’s Kospi (^KS11) added 0.4% despite weakness in Korean tech stocks.
Australia’s S&P/ASX 200 (^AXJO) climbed 0.3%, led by gains in miners and banks.
Hong Kong’s Hang Seng Index (^HSI) and China’s CSI 300 (000300.SS) were flat at the open, as caution prevailed among investors navigating mixed economic signals from the mainland.
Many of the gains were driven by Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau held a phone call, agreeing to keep communication open. The exchange, confirmed by China’s Foreign Ministry, comes amid efforts by both nations to stabilize ties following trade tensions and policy disputes.
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Oil prices fall as OPEC+ hint at production increase
Oil prices fell late Thursday as OPEC+ producers pointed toward an increase in supply as the US faces a surplus.
Bloomberg reports:
