U.S. Stock Index Futures Rise Ahead of Policy Shift

(Reuters) – U.S. stock index futures increased on Friday, with the S&P 500 and Dow poised for their largest weekly gains since November, as investors anticipated a series of policy changes from the incoming Trump administration.

At 5:33 a.m. ET:
– Dow E-minis: up 127 points (0.29%)
– S&P 500 E-minis: up 19.75 points (0.33%)
– Nasdaq 100 E-minis: up 90 points (0.42%)

Positive earnings results from major banks and indications of cooling inflation spurred risk-taking on Wall Street, positioning the S&P 500 and Dow for significant weekly increases.

The S&P 500 banking index and regional banks led this week, with gains of about 5.8% and 6.4%, respectively.

Upcoming quarterly reports from Truist Financial (NYSE:TFC), SLB, Fastenal, and State Street (NYSE:STT) are expected before market opening.

As of Wednesday, 82.1% of the 28 S&P 500 companies reporting fourth-quarter earnings have exceeded estimates, based on data from LSEG.

Risk sentiment was also boosted by falling yields on longer-dated bonds, with the benchmark 10-year note at a one-week low of 4.6%.

With President-elect Donald Trump taking office on Monday, investors are keen to hear about his plans regarding tax cuts, tariffs, regulations, and immigration during his inauguration speech, which analysts believe could stimulate the economy.

The S&P 500 has seen nearly a 3% increase since Election Day, but concerns linger over potential trade wars and price pressures from Trump’s policies, which may prompt the Federal Reserve to reconsider monetary policy.

Traders expect the central bank to maintain interest rates in their upcoming meeting, with the first cut anticipated in June. Earlier this week, rate cuts for 2025 had been largely discounted.

Before markets open, investors will review building permits, housing starts, and industrial production data for December to better assess the economy’s health.

Focus is also on developments regarding a ceasefire deal in the Middle East, with the Israeli cabinet expected to finalize approval amid concerns about potential delays.

In stock movements, Salesforce (NYSE:CRM) increased 1.9% as TD Cowen upgraded the software provider to “buy” from “hold,” while J.B. Hunt Transport Services plummeted 9.8% after missing fourth-quarter profit estimates due to high expenses and a reduced truck count impacting revenue.