U.S. Stocks May Extend Yesterday’s Rebound In Early Trading

The major U.S. index futures are currently pointing to a slightly higher open on Friday, with stocks likely to see further upside following the notable rebound seen in the previous session.

Early buying interest may be generated in reaction to a sharp increase by shares of Oracle (ORCL), as the software giant is surging by more than 4 percent in pre-market trading.

The jump by Oracle comes after a memo from TikTok CEO Shou Zi Chew said the company has agreed to sell its U.S. operations to a joint venture that includes Oracle and private equity firm Silver Lake.

Nvidia (NVDA) is also seeing notable pre-market strength after a report from Reuters said the Trump administration has launched a review that could result in the first shipments of the company’s second-most powerful AI chips to China.

Shars of Micron Technology (MU) may also see further upside after helping lead the markets higher on Thursday on better than expected quarterly results and blowout guidance.

After coming under considerable selling pressure over the course of the previous session, stocks showed a strong move back to the upside during trading on Thursday. The tech-heavy Nasdaq led the rebound by the major averages.

The Nasdaq jumped 313.04 points or 1.4 percent to 23,006.36 and the S&P 500 advanced 53.33 points or 0.8 percent to 6,774.76, while the narrower Dow fluctuated before closing up 65.88 points or 0.1 percent at 47,951.85.

The strength on Wall Street came following the release of a closely watched Labor Department unexpectedly showing a slowdown in the annual rate of consumer price growth.

The Labor Department said consumer prices in November were up by 2.7 percent compared to the same month a year ago.

The year-over-year price growth in November reflects a notable slowdown from the 3.0 percent surge in September. Economists had expected the annual rate of growth to tick up to 3.1 percent.

The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 2.6 percent in November from 3.0 percent in September. The pace of core price growth was expected to remain unchanged.

The tamer-than-expected inflation data has led to renewed confidence the Federal Reserve will continue cutting interest rates next year.

“Inflation has lost its grip—and the Fed knows it,” said Gina Bolvin, President of Bolvin Wealth Management Group. “Today’s CPI print gives the market what it needed: confirmation that disinflation is durable and policy relief is coming.”

A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits declined roughly in line with economist estimates in the week ended December 13th.

The Labor Department said initial jobless claims fell to 224,000, a decrease of 13,000 from the previous week’s revised level of 237,000.

Economists had expected jobless claims to slip to 225,000 from the 236,000 originally reported for the previous week.

Semiconductor stocks showed a substantial rebound after falling sharply on Wednesday, resulting in a 2.5 percent surge by the Philadelphia Semiconductor Index.
Software and networking stocks also saw significant strength on the day, contributing to the jump by the tech-heavy Nasdaq.

Outside of tech sector, airline stocks turned in a strong performances, while energy stocks gave back ground after Wednesday’s rally.

Commodity, Currency Markets

Crude oil futures are climbing $0.38 to $56.53 a barrel after rising $0.21 to $56.15 a barrel on Thursday. Meanwhile, after slipping $9.40 to $4,364.50 ounce in the previous session, gold futures are inching up $1 to $4,365.50 an ounce.

On the currency front, the U.S. dollar is trading at 157.31 yen versus the 155.56 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1714 compared to yesterday’s $1.1721.

Asia

Asian stocks advanced on Friday as concerns over artificial intelligence spending and valuations eased and signs of cooling U.S. inflation bolstered expectations of looser U.S. monetary policy next year.

The Japanese yen extended losses for a second day running, helping ease fears of a sharp yen carry trade unwind. Gold ticked lower but hovered near record highs.

Oil was on track for a second weekly loss as investors weighed the risk of a global surplus against concerns over Venezuelan supply disruptions.

China’s Shanghai Composite Index closed 0.4 percent higher at 3,890.45 after a choppy session.

Geopolitics remained in the spotlight after the Trump administration announced a massive package of arms sales to Taiwan valued at more than $10 billion.

Hong Kong’s Hang Seng Index advanced 0.8 percent to 25,690.53, extending gains for a third consecutive session.

Japanese markets rallied, the yen weakened and Japan’s 10-year government bond yield jumped to a 26-year peak after the Bank of Japan raised its key policy rate 25 basis point to 0.75 percent, its highest level since September 1995, signaling a broader policy shift amid rising uncertainties surrounding the U.S. economy and trade policies.

Data showed earlier in the day that Japanese consumer inflation remained well above the central bank’s 2 percent target in November.

The Nikkei 225 Index jumped 1.0 percent to 49,507.21, while the broader Topix Index settled 0.8 percent higher at 3,383.66.

Artificial intelligence-linked shares soared, with technology investor SoftBank Group surging 6.1 percent after a solid outlook from Micron Technology. Advantest and Tokyo Electron climbed 2-3 percent.

Seoul stocks closed higher, led by carmakers and defense stocks. The Kospi climbed 0.7 percent to 4,020.55. Hyundai Motor gained 2.1 percent and Hanwha Aerospace surged 3.9 percent.

Australian markets eked out modest gains after the release of unexpectedly tamer-than-expected U.S. inflation data.

The benchmark S&P/ASX 200 Index edged rose 0.4 percent to 8,621.40, while the broader All Ordinaries Index closed 0.5 percent higher at 8,918.30.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index gained 0.6 percent to close at 13,333.40.

Europe

European stocks were little changed on Friday, a day after the European Central Bank and Bank of England issued hawkish signals on the outlook for their rate paths.

Meanwhile, European Union leaders have decided to borrow cash to fund Ukraine’s defense rather than use frozen Russian monies.

While the French CAC 40 Index is down by 0.1 percent, the U.K.’s FTSE 100 Index is just below the unchanged line and the German DAX Index is down by 0.1 percent.

Sportswear giant Puma and Adidas have moved to the downside after Nike warned of weak China demand and rising tariff pressure.

DIY retailer Hornbach Holding has also tumbled after reporting a 21 percent slump in third quarter adjusted profit.

Biopharmaceutical company Ipsen has also fallen after a pivotal Phase II FALKON study evaluating fidrisertib in patients with fibrodysplasia ossificans progressiva (FOP) failed to meet its primary endpoint.

Travel retailer WH Smith has also moved notably lower after missing annual profit expectations and cutting its headline profit forecast.

Meanwhile, Capita has advanced after its contact center business within Capita Experience secured a four-year contract renewal with a major European telecommunications provider.

U.S. Economic News

The National Association of Realtor is scheduled to release its report on existing home sales in the month of November at 10 am ET.

Existing home sales are expected to increase to an annual rate of 4.15 million in November from a rate of 4.10 million in October.

Also at 10 am ET, the University of Michigan is due to release its revised reading on consumer sentiment in the month of December.

The consumer sentiment index for December is expected to be upwardly revised to 53.4 from a preliminary reading of 53.3, which was up from 51.0 in November.