Investing.com Update

US stock futures dipped on Friday after a record-setting rally on Wall Street. Hopes for technology stocks were boosted by the Federal Reserve’s significant interest rate cut earlier this week. Meanwhile, fresh jobless claims data fueled optimism that lower borrowing costs would support labor demand without reigniting inflation pressures.

1. Futures Dip

US stock futures edged lower following a record-high Wall Street session.
– Dow futures: Down 32 points (0.1%)
– S&P 500 futures: Down 10 points (0.2%)
– Nasdaq 100 futures: Down 49 points (0.2%)

Thursday’s rally was attributed to the Fed’s unprecedented 50-basis point interest rate cut, with the S&P 500 gaining 95 points (1.7%), Nasdaq rising 441 points (2.5%), and the Dow adding 522 points (1.3%).
Sentiment improved as jobless claims fell to a four-month low, alleviating concerns over inflation and unemployment.
Analysts at Vital Knowledge noted favorable conditions, including disinflation and healthy corporate performance, should continue to support stock prices.

2. Central Bank Decisions in Asia

The Bank of Japan kept its interest rates unchanged at 0.25%, with an improved outlook for consumption signaling moderate growth expectations. However, uncertainties around economic activity and prices remain high.
The People’s Bank of China maintained its loan prime rate at 3.35%, with a potential future cut expected in light of recent weak economic conditions.

3. Nike CEO to Step Down

Nike shares rose after announcing CEO John Donahoe will step down next month, with Elliott Hill as his successor.
Hill, a long-time Nike executive, takes over on October 14. Donahoe’s departure follows increased competition and a sales warning in June that saw shares drop significantly.

4. FedEx Cuts Annual Guidance

FedEx shares fell after the logistics company cut its fiscal 2025 earnings guidance, forecasting adjusted earnings of $20.00 to $21.00, down from $20.00 to $22.00. The reported first-quarter earnings of $3.60 per share fell short of Wall Street’s expectations.

5. Oil on Pace for Second Straight Weekly Gain

Crude oil prices dipped on Friday but are tracking for a second consecutive weekly gain.
– Brent crude: $74.60 per barrel (down 0.4%)
– WTI crude: $70.93 per barrel (down 0.3%)

Gains followed fears of slowing demand eased by the US interest rate cuts, despite ongoing concerns, especially with top importer China.