S&P 500 futures edged higher on Friday, but the index is on pace for a losing week as tech and AI-linked stocks fell. Investors have also been grappling with hotter-than-expected inflation data.
S&P 500 futures rose slightly on Friday, as traders headed for a mostly losing week amid declines in tech and artificial intelligence-related names. Futures tied to the broad market average traded 0.2% higher, while Nasdaq-100 futures teetered around the flat line.
Chip stocks drag the week lower
Chipmakers were lower again. The VanEck Semiconductor ETF (SMH) shed 0.7%, led by declines in Micron, AMD and Sandisk, and it is down 7.4% week to date heading into Friday's open. Semiconductors have struggled this week amid jitters about competition from China.
Those declines, together with drops in other AI-linked stocks, put the benchmark on pace for a loss. The S&P 500 is down 0.9% this week, while the Nasdaq has shed 2.4%.
Inflation and the Fed stay in focus
Outside of tech, investors have been grappling with hotter-than-expected inflation data, made worse by elevated energy prices after the U.S.-Iran war. Wholesale inflation saw its biggest gain since 2022 this week, while consumer inflation stayed well above the Federal Reserve's target of 2%.
Fed Chairman Kevin Warsh spoke at an IMF event in Bangkok overnight. He did not comment on whether the Fed would raise rates before year-end, and traders took that as a sign the central bank will hold policy steady later this month. The CME Group's FedWatch tool points to an 85% chance that the Fed keeps its overnight rate unchanged at its Oct. 27-28 meeting.
Tesla rises on Roadster reveal
Tesla shares rose 3% after the electric vehicle maker unveiled its next-generation roadster. The model will not go into production until 2028.
Source: CNBC
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