U.S. stocks may return to their defensive ways after a dovish Federal Open Market Committee meeting sparked a rally in the previous session. The index futures are pointing to a modestly higher opening on Friday. The yield on the benchmark Treasury note has pulled back sharply to a seven-week low on Friday in reaction to the dovish message relayed by the minutes.
The major averages advanced on Wednesday as investors construed the FOMC minutes as hinting at a slowdown in the pace of fed funds rate hikes. The Dow Industrials and the S&P 500 Index closed at their highest levels in about three months. Wall Street remained closed on Thursday in observance of the Thanksgiving holiday.
|S&P 500 Index||+0.59%||4,027.26|
Here’s a peek into index futures trading:
|Nasdaq 100 Futures||+0.05%|
|S&P 500 Futures||+0.16%|
In premarket trading on Friday, the SPDR S&P 500 ETF Trust SPY was adding 0.13% to $402.94 and the Invesco QQQ Trust QQQ moved up 0.03% to $288.91, according to Benzinga Pro data.
The economic calendar for the day is empty. Although Black Friday is not a federal holiday, several state governments observe it as a public holiday. The stock market close early at 1 p.m. EST on Friday.
Stocks In Focus:
- Tesla, Inc. TSLA stock was advancing over 2.75% in premarket despite the company’s China unit filing with the local regulators for the recall of over 80,000 vehicles.
- Apple, Inc. AAPL could be in focus as reports suggest the company could be looking to buy soccer team Manchester United.
- Shares of video game developer Activision Blizzard, Inc. ATVI fell over 3% on the news that the Federal Trade Commission is looking to block its impending merger with Microsoft Corp. MSFT.
- China stocks JD.com, Inc. JD and Alibaba Group Holding Limited BABA were also pulling back.
- Energy stocks advanced on oil’s rebound.
Commodities, Other Global Markets:
Crude oil futures are rebounding strongly following the 4.66% plunge on Wednesday. A barrel of WTI-grade crude oil traded at $79.69, up 2.25%.
The spike comes amid the meeting between energy ministers of Saudi Arabia and Iraq on Thursday, in which they discussed the need to adhere to the OPEC+ output cut that lasts until the end of 2023, Reuters reported.
Asia-Pacific stocks closed a lackluster session on Friday on a mixed note amid a lack of cues from Wall Street overnight.
After the markets closed, the People’s Bank of China announced a cut in the reserve requirement for banks by 25 basis points, effective Dec. 5, Reuters said. The reserve requirement was cut by a similar magnitude in April. This will likely help boost liquidity in the system as the country struggles with a renewed spike in COVID-19 cases.
The European markets traded mixed in early trading on Friday, awaiting direction.
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