U.S. stock futures were little changed by 12:49 p.m. on Friday, with Dow Jones futures down 70 points, or 0.10%, S&P 500 futures broadly flat and Nasdaq 100 futures up 34 points, or 0.10%, after the S&P 500 closed at a record high in the previous session.
Chip stocks support Wall Street
Wall Street's three major indexes ended Thursday's session higher, supported by sharp gains in memory-chip maker Sandisk after the company offered an upbeat long-term outlook at an analyst event. Micron Technology also rose, supporting broader gains in the technology sector.
Microsoft shares rose about 1%, while Meta Platforms gained 2.80%. Cisco Systems shares fell, as elevated expectations overshadowed its strong quarterly results. Applied Materials also came under pressure in premarket trading on Friday, despite announcing plans to expand production capacity to meet growing demand related to artificial intelligence.
Inflation data and retail sales in focus
Deutsche Bank analysts said in a research note that Thursday's gains were largely driven by a decline in the U.S. Producer Price Index for July.
Producer-price data, along with Wednesday's relatively moderate consumer-inflation report and signs of a weakening labor market, helped ease expectations of a Federal Reserve rate hike at its September meeting. Markets were pricing in about a 65% probability that interest rates would remain unchanged next month, according to the CME FedWatch tool.
Investors are awaiting Friday's retail sales report for fresh indications of the strength of consumer demand, along with business inventories data and the University of Michigan's consumer sentiment survey.
Oil rises on supply concerns
In the energy market, the United States is considering maintaining its naval blockade of Iran indefinitely, according to the report, as efforts to end the conflict and restore normal shipping through the Strait of Hormuz have stalled.
The sharp decline in tanker traffic through the strait has heightened concerns about global oil supplies, keeping prices above their levels before the war with Iran broke out in late February. Rising oil prices have also raised concerns about inflationary pressures that could affect the path of U.S. interest rates.
Brent crude futures rose 0.40% to $87.40 a barrel, while U.S. West Texas Intermediate crude futures added 1.00% to reach $82.03 a barrel. Both benchmarks were trading about 5% higher this week.
