US pre-open: Futures lower ahead of April PCE reading
By Iain Gilbert
Date: Friday 30 May 2025
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Friday as investors awaited the release of the Federal Reserve's preferred inflation gauge.
As of 1230 BST, Dow Jones futures were down 0.09%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.16% and 0.17% lower, respectively.
The Dow closed 117.03 points higher on Thursday as market participants digested news that, while a federal court struck down Donald Trump's so-called "reciprocal" tariffs, an appeals court later allowed them to be reinstated until next week as it prepared to hear the White House's argument.
Friday's primary focus will likely be on last month's personal consumption expenditures index from the Bureau of Economic Analysis, at 1330 BST, the central bank's preferred measure of inflation, with analysts expecting to see core inflation rise 0.1% month-on-month and 2.5% year-on-year in April.
Trade Nation's David Morrison said: "US stock indices ended Thursday modestly higher, wrapping up a turbulent trading day that saw the major indices swing sharply in both directions. The early session was fuelled by optimism surrounding recent court developments on tariffs, helping lift the Nasdaq by more than 2% at one point. However, those gains had faded by the close after the US Court of Appeals for the Federal Circuit granted a request from the Trump administration to delay the earlier ruling by the lower court.
"The core PCE price index, the Federal Reserve's preferred inflation gauge, takes centre stage today. With markets already jittery from tariff confusion, a hotter-than-expected reading could reignite debate over the Fed's next move. Conversely, a softer print may offer breathing room to both policymakers and investors. As far as the S&P 500 is concerned, the parameters look relatively clear. A decisive break above 6,000 could encourage the bulls, while a drop below 5,800 could see investors trim their exposure."
Also on the macro front, preliminary readings of April's goods trade balance and wholesale inventories will be out at 1330 BST, while May's Chicago PMI will be published at 1445 BST and the University of Michigan's May consumer sentiment index will follow at 1500 BST.
Reporting by Iain Gilbert at Sharecast.com
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