S&P and Dow Futures Remain Flat Ahead of Upcoming US Economic Data

US stock futures displayed minimal movement on Friday as market participants anticipated an array of economic data, including new consumer spending figures and the Federal Reserve’s preferred inflation measure.

As of 06:31 ET, the Dow futures contract remained largely unchanged, while S&P 500 futures decreased by 5 points, or 0.1%, and Nasdaq 100 futures fell by 43 points, or 0.2%.

The benchmark S&P 500 saw its third record close of the week on Thursday, rising 23 points, or 0.4%. This increase was supported by reports indicating that weekly jobless claims had declined more than expected, and a final estimate of US gross domestic product confirmed a 3% growth for the world’s largest economy in the second quarter.

These positive figures bolstered optimism around the economy and labor market as the Fed indicated its intention to proceed with a policy easing cycle following a significant interest rate cut last week.

Consumer Spending and PCE Data on the Horizon

Investors are keenly focused on upcoming personal spending and inflation data, as these metrics could shed light on the health of the US economy amid anticipated interest rate cuts by the Fed later this year.

Personal spending, which contributes over two-thirds to economic activity, is projected to have risen by 0.3% in August, a deceleration from the 0.5% increase seen in the previous month.

Economists also forecast that the personal consumption expenditures (PCE) price index, a key inflation marker for Fed officials, will rise by 0.2% month-on-month in August, consistent with July’s growth rate. On a year-over-year basis, the reading is expected to cool to 2.3% from 2.5%.

When excluding volatile items such as food and fuel, the PCE price index is anticipated to mirror July’s month-on-month increase of 0.2% and see a slight uptick to 2.7% from 2.6% on an annual basis.

European Markets Reach New Heights

European stock markets achieved a new record high during mid-morning trading, energized by a rally led by China in the Asian markets.

Reports suggesting that China is contemplating additional stimulus measures—on top of several recent support policies aimed at stabilizing its struggling economy—contributed to a significant rise in Chinese stock performance, marking their strongest week since 2008.

Luxury goods stocks in Europe, which significantly benefit from sales in China, were also positively impacted. Shares in prestigious fashion brands advanced, alongside gains in the automobile sector.

Oil Prices Experience Fluctuations

Oil prices increased slightly on Friday as traders evaluated the recent stimulus measures from China alongside the potential for increased output from Libya and the OPEC+ oil alliance.

By 06:47 ET, Brent crude futures had risen by 0.3% to $71.30 per barrel, while US West Texas Intermediate crude futures climbed by 0.4% to $67.94 per barrel.

In Libya, rival factions vying for control over the country’s central bank reached an agreement to end their dispute, which had hindered domestic oil production and exports. Analysts indicated that over 500,000 barrels per day of Libyan supply could soon return to the market.

Additionally, OPEC+ is planning to reverse ongoing output cuts of 180,000 barrels per day in December. Investors are weighing the prospects of increased supply against a substantial stimulus package announced by China earlier this week, although uncertainty remains regarding the effectiveness of these measures in stimulating activity in the world’s largest oil-importing nation.