A record-breaking week for the stock market is poised to conclude on a quieter note as stock futures showed muted movements early Friday. On Thursday, all three major U.S. indexes achieved new peaks for the second time this week, with the Dow industrials surpassing the significant milestone of 46,000.
The renewed optimism surrounding the AI boom and growing confidence in anticipated interest rate cuts have significantly buoyed the market. Traders are increasingly viewing a rate cut announcement expected on Wednesday as a near certainty. Furthermore, there is a 7.5% chance of a more substantial half-percentage-point cut, according to the latest CME data based on futures pricing.
On the economic front, the August consumer inflation data was released on Thursday, aligning with market expectations. However, the weekly jobless claims reached their highest level since 2021, indicating potential concerns in the labor market. As of Thursday’s close, the Dow, S&P 500, and Nasdaq composite were all on track to finish the week with gains of at least 1.5%. If these gains hold, the S&P 500 will celebrate its best week since early August.
In notable premarket trading, shares of Warner Bros. Discovery surged even higher after a significant leap on Thursday, spurred by a report from the Wall Street Journal indicating that Paramount Skydance is preparing a bid for the company. Conversely, RH saw a decline as rising tariff-related costs compelled the company to cut its annual sales guidance.
Looking ahead, preliminary readings on consumer sentiment and inflation expectations from the University of Michigan are scheduled for release at 10 a.m. ET. This data could provide further insights into consumer behavior and economic outlook.
In recent trading, Treasury yields experienced an uptick, with the 10-year yield hovering around 4.04%. Meanwhile, gold prices are on track for a record-high settlement, inching closer to an impressive $3,690 per troy ounce.
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