Stock futures edged higher Friday morning, rising after yesterday’s selloff driven by concerns over tech-sector strength and tariff costs; inflation is expected to decline slightly with today’s release of the Personal Consumption Expenditures price index; Dell ( DELL ) and HP ( HPQ ) shares were falling as tech stocks remained under pressure after AI stalwart Nvidia's ( NVDA ) earnings weighed on markets; President Donald Trump said tariffs on Canada, China and Mexico would proceed; bitcoin ( BTCUSD ) dropped below $80,000 to wipe out most of the gains registered since Trump’s election in November.
Here's what investors need to know today.
1. Stock Futures Point Higher After Tech, Tariff Selloff
Stock futures pointed higher as investors looked to inflation data following yesterday’s selloff on tariff and tech worries . Futures trading associated with the S&P 500 was higher by around 0.3% after the benchmark index shed 1.6% in Thursday trading. Those associated with the Nasdaq were higher by a similar amount after it lost 2.8% yesterday, while Dow Jones Industrial Average -linked futures also rose after dipping yesterday. Despite the early uptick, major market indexes were poised to move lower for the month of February. Yields on the 10-year Treasury note were around 4.285%, while oil futures were lower by more than 1%. Gold futures also fell.
2. Inflation Expected to Decline in January PCE Report
Market participants will be closely following the 8:30 a.m. EST planned release of the Personal Consumption Expenditures (PCE) report for January . The data is expected to show inflation came in at an annual rate of 2.5% for the month, according to a survey of economists by The Wall Street Journal and Dow Jones Newswires. That’s a tick lower than December’s rate but still above the Federal Reserve’s inflation target. The Fed cited worries over continued elevated inflation when it decided last month to not lower interest rates again .
Here's more from Investopedia on what to expect from the report.
3. Tech Stocks Sinking As Nvidia Leads Sell Off
Following Nvidia’s plunge in trading yesterday , several technology stocks were lower in premarket trading despite some computer sellers beating quarterly earnings estimates. Shares of Dell were lower by about 4% after its earnings report showed that the PC maker had strong quarterly income on the growing demand for artificial intelligence (AI) infrastructure, but its 7% revenue improvement was lower than analysts expected. HP shares were down about 3% after it beat expectations this quarter, but its earnings outlook was lower than analysts' forecasts. Nvidia shares were little changed in early trading after plunging by more than 8% yesterday.
4. Trump Sets Date for Canada, Mexico Tariffs as Economic Adviser Sees ‘Reindustrialization’ Strategy
Trump’s announcement that a 25% tariff on products made in Canada and Mexico will go into effect on March 4 weighed on markets yesterday. Oil products from Canada will be taxed at 10%. On top of that, Trump said he would put an additional 10% tariff on products from China, adding to a 10% tariff he imposed in early February. Stephen Miran, Trump’s nominee to chair the White House's Council of Economic Advisors, said in a Senate hearing that the U.S. would "reindustrialize" by taxing foreign imports, reducing regulations for businesses and developing the defense industry.
5. Bitcoin Falls Below $80,000 to Lowest Levels Since November
Bitcoin’s (
BTCUSD
) price fell below $80,000 for the first time since early November, wiping out nearly all the gains that followed Trump's reelection. The cryptocurrency’s fall coincided with the broader market selloff as
investors weigh economic uncertainty
. The selloff is hurting crypto-related stocks as well:
Bitcoin buyer Strategy
(
MSTR
), the company formerly called MicroStrategy, was down about 3% in premarket trading after registering a nearly 9% fall in the prior session. Shares of crypto brokerage Coinbase Global (
COIN
) and bitcoin mining firms Mara Holdings (
MARA
) and Riot Platforms (
RIOT
) were recently down around 3%.
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