By Pranav Kashyap and Nikhil Sharma
(Reuters) -U.S. stock index futures were muted on Friday, taking a breather after the S&P 500 and the Nasdaq closed the previous session at record highs on upbeat earnings and economic data, while Netflix’s standout profit failed to ignite enthusiasm.
At 6:57 a.m. ET, S&P 500 E-minis were up 2 points, or 0.03%, with 69,586 contracts changing hands. Nasdaq 100 E-minis were up 12.5 points, or 0.05%, and Dow E-minis were up 12 points, or 0.03%.
Wall Street’s winning streak continued overnight, with the S&P 500 and the Nasdaq notching record closes after upbeat data on retail sales and jobless claims signaled a healthy U.S. economy. The data gives the Federal Reserve some breathing room to assess the inflationary effects of U.S. tariffs.
Also driving the momentum on Thursday were impressive quarterly results from corporate giants like PepsiCo and United Airlines, while chip producer TSMC’s record profit buoyed technology stocks.
Netflix rode the success of “Squid Game” to top earnings estimates and boost its revenue outlook for the year. Yet, the streaming giant’s shares slipped 1.6% in premarket trading. It has risen 43% this year.
Additionally, 3M rose 3.2% after the industrial giant lifted its full-year profit forecast, as cost-cutting measures and efforts to focus on high-margin products pay off.
All eyes remain on whether President Donald Trump’s tariff measures are starting to ripple through the economy. The Fed has signaled it will stay the course on interest rates until it sees clearer signs of how higher import taxes are shaping inflation.
Traders now put the odds of a rate cut in September at about 56.3%, with a July move nearly off the table, according to CME’s FedWatch tool.
“This week’s data supports the wait-and-see camp on the Fed. Tariffs are percolating to consumer prices but is not withholding households from opening their wallets,” said Kenneth Broux, head of corporate research and rates, at Societe Generale.
Meanwhile, investors were also eyeing the preliminary reading for July consumer sentiment data later in the day.
Federal Reserve Governor Christopher Waller signaled on Thursday that mounting economic risks and tame inflation have him backing an interest rate cut by this month’s end, downplaying concerns that tariffs will fuel lasting price hikes.
As the second-quarter earnings season gets underway, early results from 36 S&P 500 companies that reported, more than 80% have topped Wall Street’s earnings expectations, according to LSEG I/B/E/S data.
