June 27 – U.S. stock futures climbed in early trading Friday, pointing to a positive market open as investors looked ahead to crucial inflation figures and grew more confident in the possibility of the Federal Reserve easing its policy stance in the near future. The gains put both the S&P 500 and the Nasdaq on a path toward setting fresh record highs, bolstered by optimism around monetary policy and corporate earnings.
The Personal Consumption Expenditures (PCE) index for May, considered the Federal Reserve’s preferred inflation measure, is due for release at 08:30 a.m. ET. Market participants are closely watching the data to evaluate whether inflation is continuing to cool, which could support the case for the Fed to begin easing interest rates later this year. Recent pressures on prices due to trade policies and softer demand have raised expectations for a shift in the central bank’s policy stance.
Meanwhile, geopolitical tensions in the Middle East appear to be easing, with a ceasefire holding steady. This has allowed markets to refocus on domestic economic developments and interest rate expectations. One factor fueling speculation of a shift at the top of the Federal Reserve is a report indicating that President Donald Trump may be considering announcing a replacement for Fed Chair Jerome Powell by the fall. If true, this would inject significant uncertainty into the Fed’s direction and heighten speculation of a more dovish policy approach.
Kathleen Brooks, research director at XTB, commented on the market reaction: “The suggestion that President Trump might choose a new Fed chair in the coming months has caused traders to ramp up their bets that interest rates could come down more sharply than previously expected. It’s added a new layer of dovish sentiment to an already fragile economic backdrop.”
This week’s economic data has added to the momentum for lower rates. A disappointing first-quarter GDP reading, coupled with jobless claims climbing to multi-year highs, has reinforced the belief that the economy may need support. The data suggests that underlying demand is weakening, despite a tight labor market and previous strength in consumer spending.
According to the CME Group’s FedWatch tool, traders are now assigning a 20.7% probability of a rate cut at the Fed’s July meeting — up from just 14.5% one week earlier. These rising expectations have helped lift investor sentiment and driven equity futures higher across the board.
As of 06:30 a.m. ET, Dow Jones Industrial Average futures rose by 103 points, or 0.24%. Futures tied to the S&P 500 climbed 13.5 points, or 0.22%, while the tech-heavy Nasdaq 100 futures gained 63.5 points, or 0.28%.
Among individual stocks, athletic apparel giant Nike (NKE.N) saw a notable boost, with shares jumping 9.2% in premarket trading. The company issued a forecast for first-quarter revenue that was better than analysts anticipated, helping to lift broader sentiment across the retail sector. Lululemon Athletica (LULU.O) saw a 1.4% rise in its shares following Nike’s strong performance, while Deckers Outdoor, which owns the Hoka brand, gained 2.1% in early trading.
On the other hand, the gold sector was under pressure, as bullion prices slipped to near one-month lows. Major mining firms such as Newmont and U.S.-listed Barrick saw premarket declines of 2.3% and 2% respectively, as investors rotated out of defensive assets and back into equities.
The broader indices are poised to cap off a strong week. Both the S&P 500 (.SPX) and the Nasdaq (.IXIC) are set to notch their best weekly performance in six weeks if current gains hold through the end of trading. The blue-chip Dow (.DJI) is also on track for a positive week.
In a sign of growing confidence in the resilience of U.S. markets, UBS Global Wealth Management raised its year-end target for the S&P 500 from 6,000 to 6,200, citing fading trade tensions and continued strength in corporate earnings. The move reflects a broader sentiment that while risks remain, the path for equities could remain upward if inflation continues to moderate.
Further boosting morale, a White House official confirmed that Washington has reached an agreement with China to speed up the delivery of rare-earth materials to the U.S. The deal comes just ahead of a July 9 deadline for a set of reciprocal tariffs previously threatened by President Trump. The development is being seen as a positive step in de-escalating trade tensions between the world’s two largest economies.
Investors are also anticipating the final reading of consumer sentiment for June, due at 10:00 a.m. ET. The University of Michigan’s consumer survey will offer another glimpse into how Americans are feeling about the economy, inflation, and their financial prospects as the second half of the year begins.
Adding to the day’s economic insights, several key Federal Reserve officials are scheduled to speak. Market participants will be paying close attention to remarks from New York Fed President John Williams, Cleveland Fed President Beth Hammack, and Fed Governor Lisa Cook. Any clues from their comments could help clarify the central bank’s thinking on the timing and magnitude of potential interest rate cuts.
With inflation data on deck and rate cut expectations mounting, Friday’s session could set the tone for markets heading into the summer. If the PCE report shows continued cooling in consumer prices, it could further cement the case for a Fed pivot, giving investors even more reason to remain bullish on U.S. equities.