Investing.com – U.S. stock futures were slightly lower on Friday as investors braced for the release of the Federal Reserve’s preferred inflation gauge. The data could influence how Fed policymakers, some of whom have already expressed concerns about pressure on fixed prices, approach a possible interest rate cut later this year. Shares of Trump Media & Technology fell in after-hours following the historic verdict in former President Donald Trump’s hush money case in New York.
1. Futures are falling
US stock futures fell slightly on Friday as investors awaited key inflation data later in the session.
By 03:38 ET (0738 GMT), the contract was down 21 points or 0.05%, while it was down 12 points or 0.2% and down 75 points or 0.4%.
Wall Street’s major indexes fell in the previous session, weighed in part by revised data showing the U.S. economy grew less than initially expected in the first quarter, while a separate report showed weekly jobless claims rose more. than expected.
Sentiment was also dampened by shares of business software group Salesforce (NYSE:) falling. The shares lost nearly a fifth of their value after the California-based company’s current-quarter forecasts fell short of analysts’ forecasts due to lower customer spending.
2. PCE ahead
Traders will be closely watching the release of the Personal Consumption Expenditures (PCE) price index on Friday.
The figure, the Federal Reserve’s preferred measure of inflation, could influence how the U.S. central bank approaches a potential interest rate cut later this year. Containing rising prices was the main goal of a series of rate hikes that have pushed borrowing costs to more than two-decade highs, but some Fed policymakers have said in recent days they would like to see more evidence that inflation is steadily falling back to its level. Target 2% before starting to cut rates.
The headline PCE index for April is forecast at 2.7% year-on-year and 0.3% month-on-month, both in line with the pace recorded in March. Excluding volatile items such as food and fuel, the so-called “core” PCE was 2.8% year-on-year and 0.3% month-on-month, also in line with previous values.
3. DJT shares fell after Trump was found guilty in the “secret money” trial.
Shares of Trump Media & Technology (NASDAQ:), the parent company of social network Truth Social, which is majority owned by former US President Donald Trump, fell in extended trading after a jury in New York found Trump guilty on all charges. high-profile trial in the case of “money for silence.”
In an unprecedented and unanimous verdict, the jury found that Trump broke the law by falsifying business records to hide a $130,000 payout to adult film actress Stormy Daniels before the 2016 election. This is the first time a former US president has been convicted of a crime.
Trump, the presumptive GOP nominee for president in the crucial November election, now faces a sentencing hearing in July.
Trump Media’s stock price has reflected its legal battles in the past, with shares falling more than 18% the day after the money-for-secrecy case began. Shares of the company, which went public through a merger with a special purpose acquisition firm, have fallen about 10% since its debut in March.
4. China’s manufacturing activity unexpectedly declines
Manufacturing activity in China contracted unexpectedly in May, Purchasing Managers’ Index (PMI) data showed on Friday, potentially putting pressure on officials in China to introduce more support measures.
According to the National Bureau of Statistics, the manufacturing PMI was 49.5 in May. The value was weaker than expected at 50.5 and contrasted with growth in the previous two months. A level below 50 indicates a decline.
China’s manufacturing industry is a key driver of the world’s second-largest economy, which itself has been hit by sluggish consumer demand and turmoil in the domestic property market.
Meanwhile, the non-manufacturing PMI came in at 51.1 in May, down from 51.2 in April and below expectations of 51.5.
5. Oil heads for monthly losses
Crude oil prices hovered around a flat line on Friday and were on track for monthly losses, partly on concerns that tight monetary policy will dampen demand this year.
By 3:38 a.m. ET, WTI futures were trading 0.1% lower at $77.82 a barrel, while the contract was little changed at $81.88 a barrel. Both benchmarks are expected to decline by about 2% in May.
U.S. oil inventories fell more than expected last week, but gasoline inventories rose 2 million barrels, more than expected, according to data released Thursday. That has raised concerns that demand in the world’s biggest fuel consumer will be sluggish ahead of the travel-heavy summer season.