US Stocks Likely To Open Higher After Nasdaq 100 Enters Correction Zone: 'Economic Resilience Provides A Foundation For Market Stabilization,' Says Expert
U.S. stock futures rose on Friday following Thursday’s selloff that pushed the Nasdaq 100 index into the correction zone. Futures of all four benchmark indices rose in premarket trading.
President Donald Trump‘s administration postponed implementation of certain USMCA goods that are imported from Mexico and Canada on Thursday after a 25% levy was implemented on Tuesday.
Investors await the U.S. jobs report, unemployment rate and hourly wages data for February, slated to be released today.
Meanwhile, the 10-year Treasury yield stood at 4.26%, while the two-year yield was at 3.95%. According to the CME Group's FedWatch tool, there is a 91% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.
Futures
Change (+/-)
Nasdaq 100
0.48%
S&P 500
0.30%
Dow Jones
0.15%
Russell 2000
0.19%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Friday. SPY gained 0.33% to $574.58, and QQQ was up 0.48% to $490.55, according to Benzinga Pro data.
Cues From The Last Session
Real estate, information technology, and consumer discretionary sectors experienced the most significant losses on Thursday, contributing to the overall market decline. Conversely, energy stocks bucked the trend, closing higher amidst the widespread downturn.
On the economic front, the U.S. reported a record trade deficit of $131.4 billion in January, compared to a revised $98.1 billion gap in the previous month. Unit labor costs in the nonfarm business sector rose 2.2% in the fourth quarter, compared to preliminary expectations of 3%.
Initial jobless claims declined by 21,000 from the previous week to 221,000 during the last week of February, compared to market estimates of 235,000.
Kroger Co. (NYSE:KR) reported better-than-expected earnings for its fourth quarter.
Index
Performance (+/-)
Value
Nasdaq Composite
-2.61%
18,069.26
S&P 500
-1.78%
5,738.52
Dow Jones
-0.99%
42,579.08
Russell 2000
-1.63%
2,066.55
Insights From Analysts
While markets have reacted negatively to recent tariff announcements, this suspension could set the stage for a potential market recovery in the medium term, explained Subho Moulik, the founder and CEO of the fintech platform Appreciate.
“Despite legitimate concerns about inflation and trade uncertainty, U.S. economic fundamentals remain solid with unemployment edging down to 4% and GDP growth still in the positive territory. This economic resilience provides a foundation for market stabilization,” Moulik added.
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