United States stock futures rose modestly on Thursday night (Friday AEDT), following a deep sell-off during the regular session which sent the S&P 500 into correction territory.
By 9:20 am AEDT (10:20 pm GMT) Dow Jones Industrial Average futures were up 0.2%, S&P 500 futures added 0.4%, while Nasdaq 100 futures lifted 0.5%.
In extended deals, DocuSign climbed 9.2% after reporting total revenue of $776.3 million, marking a 9% year-over-year increase.
Ulta Beauty surged 6.4% as fourth-quarter earnings per share came in at $8.46, exceeding expectations of $7.11.
PagerDuty added 5.1% after reporting a 9.5% year-on-year increase in revenuesm while issuing strong full-year guidance.
During the regular session, the Dow fell 1.3%, the S&P 500 lost 1.4%, and the Nasdaq dropped 2%.
Market sentiment has been rattled by ongoing uncertainty over President Donald Trump’s trade policies. The past three weeks have seen heightened volatility as shifting tariff policies create economic uncertainty.
For the week so far, The Dow, S&P 500 and Nasdaq have lost 4.7%, 4.3% and 4.9%, respectively.
Investors are now looking ahead to Friday’s University of Michigan consumer sentiment data, following easing consumer price index (CPI) and producer price index (PPI) inflation reports.
Analysts at ANZ commented in a note to clients: "The inflation data could be reflecting several things including still-restrictive monetary policy, a possibility that weakening consumer confidence is reducing firms’ ability to raise prices and more cautious consumer spending.
"It will take time for underlying clarity to emerge, but for the Fed elevated uncertainty and a widening range of possible outcomes around the soft-landing base-case in the Summary of Economic Projections argues for caution on monetary policy through these choppy times.
"We expect no change in either policy rates or guidance at next week’s FOMC meeting."
Markets are currently pricing in a 98% probability that the Fed will keep interest rates unchanged, according to the CME FedWatch Tool.
