Futures Pointing To Slightly Higher Open On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a slightly higher open on Friday, with stocks likely to move to the upside after ending the previous session off their worst levels but still mostly lower.

Stocks may benefit from recent upward momentum, as higher is largely seen as the path of least resistance despite rising concerns about an AI bubble.

However, buying interest has waned somewhat over the past week due to the valuation worries as well as the ongoing U.S. government shutdown, which enters its tenth day today.

Traders may also be reluctant to make significant moves ahead of the release of the University of Michigan's preliminary reading on consumer sentiment in the month of October shortly after the start of trading.

The University of Michigan's consumer sentiment index is expected to edge down to 54.2 in October after falling to 55.1 in September.

With the shutdown indefinitely delaying government data, the report may attract more attention than usual as traders look for clues about the outlook for the economy and interest rates.

Stocks saw some weakness during trading on Thursday, giving back ground following the advance seen over the course of the previous session. The major averages all moved to the downside, with the Nasdaq and the S&P 500 pulling back off Wednesday's record closing highs.

The Nasdaq and the S&P 500 climbed well off their worst levels going into the close but remained in the red. The Nasdaq edged down 18.75 points or 0.1 percent to 23,024.63, the S&P 500 fell 18.61 points or 0.3 percent to 6,735.11 and the Dow slid 243.36 points or 0.5 percent to 46,358.42.

The pullback on Wall Street may partly have reflected profit taking following recent strength in the markets, which came amid persistent optimism about the artificial intelligence trade.

Investors may also have begun to express concerns about the ongoing U.S. government shutdown. Lawmakers in Washington continue to struggle to pass a temporary funding bill due in part to Democrats' demands that the legislation include an extension of enhanced Obamacare tax credits.

Verbal confrontations between Republicans and Democrats on Capitol Hill on Wednesday suggest the stalemate is likely to drag on.

While traders have largely shrugged off the shutdown over the past week, worries about the economic impact of a prolonged suspension of non-essential government services may be starting to weigh on the markets.

Traders also kept an eye on remarks by several Federal Reserve officials, with Fed Governor Michael Barr said the central bank should move "cautiously" due to considerable uncertainty about the future course of the economy.

"If we see inflation moving further away from our target, then it may be necessary to keep policy at least modestly restrictive for longer," Barr said during remarks at an Economic Club of Minnesota Luncheon

"If we see heightened risks in the labor market, then we may need to move more quickly to ease policy," he added. "The FOMC can, and I believe would, act forcefully to stabilize the economy if necessary."

Fed Chair Jerome Powell also delivered welcoming remarks at a Community Bank Conference but did not provide any insight into the outlook for interest rates.

Gold stocks pulled back sharply after surging in the previous session, with the NYSE Arca Gold Bugs Index plunging by 4.5 percent as the price of the precious metal gave back ground after soaring to record highs.

Significant weakness was also visible among housing stocks, as reflected by the 2.5 percent slump by the Philadelphia Housing Sector Index. The index tumbled to its lowest closing level in two months.

Energy stocks also saw considerable weakness amid a steep drop by the price of crude oil, moving notably lower along computer hardware and transportation stocks.

Commodity, Currency Markets

Crude oil futures are slumping $0.94 to $60.57 a barrel after tumbling $1.04 to $61.51 a barrel on Thursday. Meanwhile, after plummeting $97.90 to $3,972.60 an ounce in the previous session, gold futures are climbing $32.60 to $4,005.20 an ounce.

On the currency front, the U.S. dollar is trading at 152.55 yen versus the 153.06 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1569 compared to yesterday's $1.1563.

Asia

Asian stocks fell broadly on Friday as investors booked some profits in the technology sector following warnings of stretched valuations.

The International Monetary Fund (IMF) and the Bank of England (BOE) have both cautioned about the potential for a collapse mirroring the dotcom bubble.

Chinese markets ended lower amid intensifying trade tensions with the United States.

The benchmark Shanghai Composite Index slid 0.9 percent to 3,897.03 as China imposed broad restrictions on rare earth exports and the Trump administration proposed banning Chinese airlines from flying over Russia on U.S. routes. Hong Kong's Hang Seng Index slumped 1.7 percent to 26,290.32.

Japanese markets fell sharply on concerns of a potential bubble in the AI-linked tech space and amid worries about whether newly-elected LDP leader Sanae Takaichi can successfully secure coalition partners.

The Nikkei 225 Index tumbled 1.0 percent to 48,088.80, heading into a three-day weekend. The broader Topix Index settled 1.9 percent lower at 3,197.59.

SoftBank Group lost 3.1 percent and Tokyo Electron dropped 1.4 percent, while Fast Retailing jumped 6.7 percent after posting a record high profit for the year ended August.

The yen held steady but was set for its biggest weekly loss in a year to due fiscal concerns.

Japanese wholesale prices rose 2.7 percent in the year to September, and most households expect prices to keep rising a year from now, Bank of Japan data showed today.

Seoul markets bucked the regional weak trend to renew their record high levels as traders returned from a seven-day Chuseok holiday. The Kospi jumped 1.7 percent to 3,610.60, surpassing the landmark 3,600 line for the first time.

Samsung Electronics surged 6.1 percent after it reportedly moved to revive its partnerships with U.S. chipmakers Qualcomm and Intel. SK Hynix shares soared 8.2 percent.

Australian markets ended slightly lower, with mining and gold stocks underperforming triggered by the Gaza peace plan and reports of further price disputes between BHP and China.

The benchmark S&P/ASX 200 Index dipped 0.1 percent to 8,958.30, while the broader All Ordinaries Index closed down 0.1 percent at 9,264.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index fell 0.8 percent to 13,467.26, dragged down mainly by weakness among healthcare stocks.

Europe

European stocks are little changed on Friday, with deepening concerns about an AI bubble and renewed worries about the political situation in France keeping investors on edge.

French President Emmanuel Macron has called a meeting of the country's mainstream political parties today ahead of a self-imposed deadline to name a new prime minister.

While the German DAX Index is just above the unchanged line, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both nearly flat.

U.K. permanent job placements declined at a softer pace and candidate supply increased sharply amid falling demand for staff in September, monthly data from S&P Global showed.

Permanent staff appointments dropped at the weakest pace in a year in September. Temp billings dropped at a solid pace that was faster than in August.

In corporate news, automotive manufacturing giant Stellantis NV has surged after reporting a 13 percent increase in third quarter shipments.

Recruitment firm Hays has also soared despite reporting an 8 percent drop in first-quarter like-for-like net fees and warning of a tough year ahead.

Meanwhile, Ibstock has moved sharply lower after the British brick maker issued a second profit warning for 2025.

Danish insurer Tryg has also moved to the downside after reporting a decrease in third quarter earnings.

U.S. Economic News

Chicago Federal Reserve President Austan Goolsbee is due to deliver opening remarks and moderate a discussion before the 19th annual Community Bankers Symposium at 9:45 am ET.

At 10 am ET, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of October. The consumer sentiment index is expected to edge down to 54.2 in October after falling to 55.1 in September.

St. Louis Federal Reserve President Alberto Musalem is due to speak on the U.S. economy and monetary policy in fireside chat as part of the Springfield Area Chamber of Commerce Public Policy Speaker's Series at 1 pm ET.