After ending the previous session modestly lower, stocks may see further downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.3 percent.
The downward momentum on Wall Street comes amid a negative reaction to some key U.S. economic data, including the Federal Reserve’s preferred readings on consumer price inflation.
A highly anticipated report released by the Commerce Department showed consumer prices in the U.S. increased by slightly more than expected in the month of December.
The Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.4 percent in December after inching up by 0.2 percent in November. Economists had expected prices to rise by 0.3 percent.
The report also said the PCE price index in December was up by 2.9 percent compared to the same month a year ago, reflecting an uptick from 2.8 percent in November. The annual rate of growth was expected to remain unchanged.
Excluding food and energy prices, the core PCE price index still increased by 0.4 percent in December after rising by 0.2 percent in November. Core prices were expected to grow by 0.3 percent.
The annual rate of growth by the core PCE price index accelerated to 3.0 percent in December from 2.8 percent in November. Economists had the pace of growth to inch up to 2.9 percent.
Meanwhile, a separate report released by the Commerce Department showed economic growth in the U.S. slowed by much more than anticipated in the fourth quarter of 2025.
The report said gross domestic product climbed by 1.4 percent in the fourth quarter after surging by 4.4 percent in the third quarter. Economists had expected GDP to jump by 2.8 percent.
The Commerce Department noted increases in consumer spending and investment were partly offset by decreases in government spending and exports.
Stocks moved mostly lower during trading on Thursday, giving back ground after turning in a strong performance in the previous session. The major averages all moved to the downside, although selling pressure was somewhat subdued.
The major averages finished the day off their lows of the session but still in negative territory. The Dow slid 267.50 points or 0.5 percent to 49,395.16, the Nasdaq fell 70.91 points or 0.3 percent to 22,682.73 and the S&P 500 dipped 19.42 points or 0.3 percent to 6,861.89.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday. Japan’s Nikkei 225 Index and Hong Kong’s Hang Seng Index both slumped by 1.1 percent, but South Korea’s Kospi bucked the downtrend and surged by 2.3 percent to a record high.
Meanwhile, the major European markets have moved to the upside on the day. While the French CAC 40 Index is up by 0.7 percent, the U.K.’s FTSE 100 Index is up by 0.5 percent and the German DAX Index is up by 0.2 percent.
In commodities trading, crude oil futures are falling $0.25 to $66.18 a barrel after surging $1.24 to $66.43 a barrel on Thursday. Meanwhile, after slipping $12.10 to $4,997.40 ounce in the previous session, gold futures are jumping $49.80 to $5,047.20 an ounce.
On the currency front, the U.S. dollar is trading at 155.38 yen versus the 154.98 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1763 compared to yesterday’s $1.1772.
Business News
U.S. Stocks May See Further Downside Following Key Economic Data
2026-02-20 13:55:56
