Dow Jones Hits Record High Amid Economic Optimism and Tech Rally

Dow Jones Today: Stock Futures Higher Ahead of Key Inflation Reading

Stephen Wisnefski is the Executive Editor of News at Investopedia. He has more than two decades of experience as a journalist and newsroom leader, including 25 years at Dow Jones and The Wall Street Journal. Stock futures were pointing to a higher open for major indexes Friday ahead of the release of inflation data that the Federal Reserve is watching closely as it considers cutting its benchmark interest rate. Futures tied to the Dow Jones Industrial Average were up 0.2%, while those linked to the S&P 500 and Nasdaq 100 were up 0.5% and 0.8%, respectively. On Thursday, the S&P 500 and Nasdaq ended slightly lower, while the Dow closed at a record high for the third time this week. Market participants will be keeping close tabs on the 8:30 a.m. ET release of the Personal Consumption Expenditures index, which is the Fed's preferred measure of inflation. Fed Chair Jerome Powell last week signaled that rate cuts are coming, but noted that incoming data will drive the decisions on the pace and depth of the easing. The yield on 10-year Treasurys, which is sensitive to expectations around interest rates, was little changed at 3.86% ahead of the important inflation data. Among stocks on the move in premarket trading, Dell Technologies (DELL) was up 5% after reporting strong quarterly results on the strength of AI-related sales. Shares in MongoDB (MDB) soared 15% after the company reported better-than-expected earnings and boosted its full-year guidance amid robust AI demand. Mega-cap tech stocks were up across the board, led by a 1.4% gain for Nvidia (NVDA), which had fallen sharply yesterday after its highly anticipated earnings report fell short of the most optimistic expectations on Wall Street. Microsoft (MSFT), Apple (AAPL), Meta Platforms (META), Amazon (AMZN) and Alphabet (GOOGL) were all higher ahead of the opening bell. Gold futures were down slightly to around $2,550 per ounce, while bitcoin was holding stead around $59,500.

Stock futures are slightly higher as traders brace for key inflation report: Live updates

Stock futures ticked higher Thursday night as investors prepared for a crucial inflation reading that's closely watched by the Federal Reserve. The market has seen choppy trading action this week leading up to Nvidia's quarterly results. The artificial intelligence darling slumped on Thursday, weighing on the S&P 500 and dragging the Nasdaq Composite lower. A new catalyst for stocks awaits on Friday at 8:30 a.m. ET: the personal consumption expenditures price index. Economists polled by Dow Jones anticipate a 0.2% monthly increase in July for headline prices, or 2.5% on an annual basis. The core reading is expected to have gained 0.2% from the prior month, or 2.7% from 12 months earlier. The Fed keeps a close eye on this metric, and it could still influence policymakers' rate decision in September. "The market is set to absorb the results of the PCE release, with consensus estimates focused on the core year-over-year report inching slightly higher at 2.7% following 2.6% for the previous print," said LPL Financial's chief global strategist Quincy Krosby. "Because there are some Fed members suggesting they need more data to confirm that inflation is continuing on a downward path before agreeing to cut rates, any surprise indicating a hotter report could be negative for the market," she added.