Upward Momentum May Carry Over In Early Trading On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to initial strength on Wall Street on Friday, with stocks likely to move mostly higher after closing mixed for two straight sessions.

Stocks may continue to benefit from recent upward momentum, which has seen the S&P 500 close higher for four straight days and turn positive year-to-date.

The markets have recently been encourage by Monday's news of a U.S.-China trade deal temporarily slashing steep tariffs on each other's goods.

However, lingering uncertainty about the U.S. and its trade partners reaching deals that permanently lower tariffs has kept buying interest somewhat subdued.

After experiencing choppy trading during Wednesday's session, stocks turned in another relatively lackluster performance during trading on Thursday. The major averages fluctuated over the course of the day before eventually closing mixed.

While the Nasdaq dipped 34.49 points or 0.2 percent to 19,112.32, the S&P 500 rose 24.35 points or 0.4 percent to 5,916.93 and the Dow climbed 271.69 points or 0.7 percent at 42,322.75.

With the upward move, the S&P 500 closed higher for the fourth straight session, reaching its highest closing level in well over two months.

The choppy trading on day came as traders digested an avalanche of U.S. economic data, including a Labor Department report showing producer prices unexpectedly decreased in the month of April.

The Labor Department said its producer price index for final demand fell by 0.5 percent in April following a revised unchanged reading in March.

Economists had expected producer prices to rise by 0.2 percent compared to the 0.4 percent decline originally reported for the previous month.

Another report released by the Commerce Department showed a slight increase by U.S. retail sales in the month of April.

The Commerce Department said retail sales crept up by 0.1 percent in April after surging by an upwardly revised 1.7 percent in March.

Economists had expected retail sales to inch up by 0.1 percent compared to the 1.4 percent jump originally reported for the previous month.

Excluding sales by motor vehicle and parts dealers, retail sales still edged up by 0.1 percent in April after climbing by 0.8 percent in March. Ex-auto sales were expected to rise by 0.3 percent.

Meanwhile, the Federal Reserve released a report on showing industrial production in the U.S. came in unchanged in the month of April.

The Fed said industrial production was unchanged in April after falling by 0.3 percent in March. Economists had expected industrial production to rise by 0.2 percent.

While utilities output surged by 3.3 percent in April after plunging by 6.2 percent in March, manufacturing and mining output fell by 0.4 percent and 0.3 percent, respectively.

Pharmaceutical stocks showed a strong move back to the upside following a recent slump, with the NYSE Arca Pharmaceutical Index surging by 2.6 percent after ending Wednesday's trading at its lowest closing level in a month.

Significant strength was also visible among utility stocks, as reflected by the 2.4 percent jump by the Dow Jones Utility Average.

Gold, biotechnology and commercial real estate stocks also saw considerable strength, while oil service and airline stocks showed notable moves to the downside.

Commodity, Currency Markets

Crude oil futures are rising $0.29 to $61.91 a barrel after tumbling $1.53 to $61.62 barrel on Thursday. Meanwhile, after jumping $38.30 to $3,226.60 an ounce in the previous session, gold futures are slumping $42.10 to $3,184.50 an ounce.

On the currency front, the U.S. dollar is trading at 145.59 yen versus the 145.67 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1192 compared to yesterday's $1.1187.

Asia

Asian stocks ended mostly lower on Friday as Japanese GDP data disappointed and investors awaited clarity on how the global economy would be impacted by U.S. tariffs on its trading partners.

The U.S. dollar tracked Treasury yields lower as a string of softer-than-expected U.S. economic data released on Thursday fueled hopes for more rate cuts from the Federal Reserve in the coming months.

Gold prices fell nearly 1 percent toward $3,200 per ounce as trade worries ebbed. Oil held steady but was on track for a weekly gain due to optimism surrounding a potential trade agreement between the United States and China.

China's Shanghai Composite Index dropped 0.4 percent to 3,367.46, with earnings and U.S. tech restrictions in focus.

Reuters reported the U.S. Commerce Department is considering placing more Chinese companies, including Changi Memory, on its restricted export list.

Hong Kong's Hang Seng Index ended down 0.5 percent at 23,345.05. E-commerce giant Alibaba Group Holding slumped 4.1 percent after posting disappointing earnings, reflecting pressure on Chinese consumers.

Japanese markets ended on a flat note as new data showed Japan's economy contracted an annualized 0.7 percent in the first quarter of 2025, marking the first contraction in four quarters.

The Nikkei 225 Index finished marginally lower at 37,753.72, while the broader Topix Index ended with a positive bias at 2,740.45.

Seoul stocks eked out modest gains, with food and defense stocks pacing the gainers. The Kospi edged up by 0.2 percent to close at 2,626.87.

Samyang Food soared 19 percent on its record-breaking first-quarter earnings. Defense giant Hanwha Aerospace climbed 2.3 percent and LIG Nex1 surged 4.4 percent.

Australian markets hit a three-month high as steady iron ore prices boosted mining stocks. Traders also braced for an expected rate cut from the Reserve Bank of Australia on May 20.

The benchmark S&P/ASX 200 Index rose 0.6 percent to 8,343.70, logging its eighth day of gains. The broader All Ordinaries Index settled 0.6 percent higher at 8,579.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index fell 0.7 percent to 12,786.79 as initial euphoria over the U.S.-China trade truce faded. Europe

European stocks have moved mostly higher on Friday as a slew of weak U.S. economic data suggested the Federal Reserve may have more leeway to cut interest rates later this year. There is still considerable uncertainty despite the recent U.S.-China trade truce helping ease economic worries.

Fed Chair Jerome Powell warned in a speech on Thursday that near- zero interest rates are likely to be a thing of the past, and potentially more persistent, supply shocks could goose inflation higher and present a "difficult challenge for the economy and for central banks."

Closer to home, Latvian ECB Governing Council member Martins Kazaks indicated market pricing of a 25 basis point cut at the June 5 meeting is "relatively appropriate".

While the French CAC 40 Index is up by 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.4 percent.

United Internet AG has surged. The German Internet conglomerate said it would invest up to €300 million to boost its stake in mobile subsidiary 1&1 from 80.8 percent to 90 percent.

ASSA ABLOY AB has also jumped. The world's leading manufacturer of locking systems has acquired TeleAlarm Group, a European provider of remote care technology that combines hardware and software solutions.

Cartier owner Richemont has also moved sharply higher as it reported a slightly better-than-expected 7 percent increase in quarterly sales.

Reinsurer Swiss Re has also moved to the upside after reporting stronger-than-expected first quarter results.

On the other hand, Workspace Group shares have plummeted. The landlord foresees a trading profit headwind of approximately £7 million by March 2026.

In economic news, the French jobless rate rose marginally in the first quarter, the statistical office INSEE reported.

The ILO unemployment rate stood at 7.4 percent, up from 7.3 percent in the fourth quarter of 2024. The rate matched economists' expectations.

The number of unemployed people increased by 64,000 from the previous quarter to 2.4 million.

U.S. Economic News

While the Commerce Department released a report on Friday showing a rebound by new residential construction in the U.S. in the month of April, the report also showed a substantial pullback by building permits during the month.

The Commerce Department said housing starts shot up by 1.6 percent to an annual rate of 1.361 million in April after plummeting by 10.1 percent to a revised rate of 1.339 million in March.

Economists had expected housing starts to surge by 3.5 percent to a rate of 1.370 million from the 1.324 million originally reported for the previous month.

Meanwhile, the report said building permits plunged by 4.7 percent to an annual rate of 1.412 million in April after jumping by 1.9 percent to a revised rate of 1.481 million in March.

Building permits, an indicator of future housing demand, were expected to slump by 2.2 percent to a rate of 1.450 million from the 1.482 million originally reported for the previous month.

The Labor Department also released a report on Friday unexpectedly showing modest increases by U.S. import and export prices in the month of April.

The report said import prices crept up by 0.1 percent in April after falling by a downwardly revised 0.4 percent in March.

Economists had expected import prices to decrease by 0.4 percent compared to the 0.1 percent dip originally reported for the previous month.

Meanwhile, the Labor Department said the annual rate of growth by import prices slowed to just 0.1 percent in April from 0.9 percent in March.

The Labor Department said export prices also inched up by 0.1 percent in April, matching an upwardly revised uptick in March.

Economists had expected export prices to decline by 0.5 percent compared to the unchanged reading originally reported for the previous month.

The report said the annual rate of growth by exports prices slowed to 2.0 percent in April from 2.4 percent in March.

At 10 am ET, the University of Michigan is scheduled to release its preliminary report on consumer sentiment in the month of May. The consumer sentiment index is expected to rise to 53.4 in May after slumping to 52.2 in April.

Richmond Federal Reserve President Thomas Barkin is due to deliver the commencement address at Vance-Granville Community College at 6 pm ET.

At 8:40 pm ET, San Francisco Federal Reserve President Mary Daly is scheduled to deliver the commencement address at the College of Western Idaho.