US stock futures, including the S&P 500, Nasdaq 100, and Dow futures, were higher in early trading on Friday, looking to rebound from a sharp selloff in the previous session. Despite this uptick, all major indexes, including the S&P 500 and Nasdaq, are still on track for weekly losses. The tech-heavy Nasdaq and Russell 2000 were both down approximately 2.5% for the week, while the S&P 500 and Dow were also headed for weekly declines.
Investors are grappling with several factors, including rising Treasury yields, higher oil prices, and renewed inflation concerns. The 30-year Treasury yield held at 5.24%, while the 10-year yield remained stable at 4.70%, contributing to investor anxiety. This rise in long-dated Treasury yields has been a central concern, pushing the 30-year Treasury yield to its highest level since 2007 earlier in the week.
Several individual stocks and sectors are in focus. Micron (MU) is gaining attention after its CEO highlighted AI's role in memory as "strategic infrastructure." SpaceX (SPCX) and AST SpaceMobile (ASTS) were reportedly interested in acquiring $6 billion worth of 800 MHz spectrum licenses, though Elon Musk reportedly refuted these claims. Other space-related companies like RKLB and LUNR are also being watched after a White House memorandum aimed at boosting US space launches. In the crypto sector, Bitcoin crossed $74,000, fueling rallies in related equities like Strategy (MSTR), Marathon Digital (MARA), and Coinbase (COIN).
Walmart Inc. (WMT) experienced a significant drop, with shares tumbling over 9% after reporting weaker-than-expected quarterly sales growth and signaling a softer consumer environment due to elevated fuel costs. Conversely, financial stocks provided a boost to the market, with JPMorgan Chase and Goldman Sachs seeing increases, and the S&P 500 banks index rising by 1.1%. Robinhood (HOOD) advanced by 12.4%, and Strategy (MSTR) jumped nearly 8%.
Looking ahead, market focus will shift to next week's personal consumption expenditures (PCE) data, a key inflation gauge, and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium. Nvidia's (NVDA) quarterly earnings report, also due next week, will be a crucial test for the AI trade. UBS Global Wealth Management has raised its year-end target for the S&P 500 to 8,100, citing a stronger earnings outlook.
