U.S. Stocks May Edge Higher Ahead Of Consumer Sentiment Data

(RTTNews) - After ending the previous session off their worst levels but still mostly lower, stocks may move to the upside in early trading on Friday. The major index futures are currently pointing to a slightly higher open for the markets, with the S&P 500 futures up by 0.1 percent.

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.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slumped by 1.0 percent, while Hong Kong's Hang Seng Index tumbled by 1.7 percent.

Meanwhile, the major European markets are little changed on the day. 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.

In commodities trading, 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.