Stocks were setting up for a rebound on Friday, as investors prepared for the release of the Federal Reserve’s favorite inflation measure and after a surprise Bank of Japan rate shift rattled markets.
Futures on the Dow Jones Industrial Average (^DJI) were up 0.1%, after the benchmark failed on Thursday to add to its longest run of wins since 1987. S&P 500 (^GSPC) futures added 0.4%, while tech-heavy Nasdaq 100 futures climbed 0.8%, after all the major gauges closed in the red.
The wait is on for Friday’s update on the PCE price index, a key inflation indicator for the Fed as it tries to cool inflation. A fallback in price rises could give the central bank scope to ease up on interest rate increases and encourage hopes that no more hikes will come this year.
Also in focus is the Bank of Japan’s move to loosen control of market rates, which has raised questions about whether the central bank could reverse its longtime ultra-easy monetary policy. Hints in a Nikkei report that a shift was coming unsettled markets, sending 10-year Treasury yields above 4%.