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All
eyes will be on personal consumption expenditure data - the
Fed's preferred inflation gauge - due at 8:30 a.m. ET. A
majority of economists polled by Reuters expect the price index
to show a 2.8% rise on an annual basis in November, softening
from a 3% increase the month before.
Core prices, excluding volatile items like food and energy, is
expected to have risen by 3.3% last month, compared with 3.5%
growth in October.
The S&P 500 and the Nasdaq finished over 1% higher on Thursday
after data signaled third-quarter U.S. economic growth was not
as robust as originally stated, aiding hopes that the Fed could
reduce borrowing costs next year.
All three indexes are poised for their eighth-straight week in
the green, with the S&P 500 set for its longest weekly winning
streak since 2017, and the Nasdaq and the Dow since 2019.
The rally gained momentum last week after the central bank
acknowledged that inflation was nearing the target rate,
bringing interest rate cuts "into view".
Traders see a 83.7% chance of at least a 25 basis point (bps)
rate cut in March next year, and expect borrowing costs to be
lower by 125 bps in September 2024, according to the CME
FedWatch Tool.
Meanwhile, Nike plunged 11.9% before the bell after the
sports-wear maker trimmed its annual sales forecast blaming
cautious consumer spending, a weaker online business and more
promotions, and said it plans to cut supplies of key product
lines to manage costs.
Shares of other sports-wear firms like Lululemon Athletica, Foot
locker and DICK'S Sporting Goods dipped between 2.6% and 6.9% in
thin trading.
At 5:46 a.m. ET, Dow e-minis were down 120 points, or 0.32%, S&P
500 e-minis were down 4.5 points, or 0.09%, and Nasdaq 100
e-minis were down 28.75 points, or 0.17%.
Among other movers, U.S.-listed shares of Chinese gaming firms
NetEase and Bilibili tumbled 23.2% and 10.7%, respectively after
Chinese regulators announced a wide range of rules aimed at
curbing spending and rewards that encourage video games.
Occidental Petroleum climbed 0.8% after Warren Buffett-led
Berkshire Hathaway raised its stake in the oil firm, bringing it
closer to 28%.
(Reporting by Johann M Cherian in Bengaluru; Editing by Maju
Samuel)
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