U.S. stock futures fell on Friday following a 25 basis point rate hike by the Bank of Japan. Futures of all four indices declined.
BOJ hiked the interest rates to 0.5% from 0.25%, the highest in 17 years since the 2008 financial crisis.
The market closed higher on Thursday extending their winning streak as S&P 500 closed at a fresh record close.
The 10-year Treasury note yielded 4.62%, while the two-year note yielded 4.27%. The CME Group's FedWatch tool indicated a strong 99.5% probability that the Federal Reserve will hold interest rates steady at its upcoming meeting on Jan. 31, 2025.
| Futures | Change (+/-) |
| Nasdaq 100 | -0.14% |
| S&P 500 | -0.10% |
| Dow Jones | -0.10% |
| Russell 2000 | -0.09% |
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ both experienced negative premarket trading on Friday. SPY declined by 0.09% to $609.22, and QQQ fell 0.09% to $532.14, according to Benzinga Pro data.
Cues From The Last Session
U.S. stocks closed higher on Thursday, with the S&P 500 reaching record highs after President Donald Trump called for lower oil prices. Speaking at the World Economic Forum via videoconference, Trump advocated for increased oil and gas production, a 15% corporate tax rate for businesses relocating to the U.S., and tariffs on countries with large trade deficits, warning Europe, Canada, and China.
U.S. initial jobless claims rose by 6,000 to 223,000 for the week ending Jan. 18, slightly above estimates. All S&P 500 sectors closed higher, with healthcare, real estate, and industrials posting notable gains.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 1.28% | 20,053.68 |
| S&P 500 | 0.53% | 6,118.71 |
| Dow Jones | 0.92% | 44,565.07 |
| Russell 2000 | 0.47% | 2,314.60 |
Insights From Analysts
The chief technical strategist at LPL Financial, Adam Turnquist said that there are plenty of catalysts underpinning the recent advance. According to him, Trump brings a pro-growth agenda to Washington, with expectations of reduced regulations and lower taxes.
Market breadth has not kept pace with the recent stock rebound, said Turnquist, suggesting the advance has been relatively narrow. Although price and breadth disparities can last for a while, they often signal potential weaknesses in a rally that could stall.
“While we are not making a call for an imminent correction, investors should not be surprised if one develops this year as history shows they occur at least once per year,” he added.
Despite these overhangs, Ryan Detrick, the chief market strategist at Carson Research said in an X post that “this is a bull market and stocks are the place to be overweight in your portfolio”.
Detrick also highlighted the data since 1950, stating that the post-election years could do better if it is a President’s second term.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will keep an eye on today:
- On Friday, S&P flash services PMI and manufacturing PMI will be released at 9:45 a.m. ET.
- Existing home sales for December and consumer sentiment data for January will be released at 10 a.m., ET.
Stocks In Focus:
- American Express Co. AXP was up 0.32% in the premarket on Friday ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $3.04 per share on revenue of $17.16 billion.
- Verizon Communications Inc. VZ was up 0.48% as Wall Street expects it to report quarterly earnings of $1.10 per share on revenue of $35.32 billion before the opening bell.
- HCA Healthcare Inc. HCA was up 2.03% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $6.13 per share on revenue of $18.23 billion.
- Intuitive Surgical Inc. ISRG was down 2.25% as it issued conservative guidance despite reporting better-than-expected earnings and sales results for the fourth quarter after the market closed on Thursday.
- Boeing Co. BA was down 1.83% as it warned investors of steeper quarterly losses and lower revenue in its preliminary fourth-quarter financial results. It also expects a $3.5 billion cash flow loss due to labor strikes and layoffs.
- Allurion Technologies Inc. ALUR was up 92.97% as it announced plans to conduct a clinical study of its gastric balloon weight-loss product alongside GLP-1 drugs.
- Starbox Group Holdings Ltd STBX was up 74.48% as it entered a software purchase agreement valued at $15.5 million via share issuance.
Commodities, Gold And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 0.31% to hover around $74.85 per barrel.
The gold spot index was up by 0.50% to $2,778.90 per ounce. The Dollar Index was down 0.66% at 107.336 level.
Asian markets closed mixed on Friday as India's S&P BSE Sensex and Japan's Nikkei 225 index fell. Whereas, China's CSI 300, Hong Kong's Hang Seng, Australia's ASX 200, and South Korea's Kospi index rose. European markets were also mixed.
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