U.S. equity futures opened higher on Friday as markets await the release of what is expected to be a favorable Personal Consumption Expenditures (PCE) Index. Core PCE, which excludes volatile food and energy components, is expected to have risen by 3.9%, the slowest rise since September 2021. This shows that inflation is on its way to the Federal Reserve’s 2% target.
Futures on the S&P 500 and the Dow Jones Industrial Average gained about 0.5% each, while those on the tech-heavy Nasdaq 100 advanced by 0.7%, meaning that all three indexes built on their gains from Thursday. This upward momentum provides some relief at the end of a difficult month of trading. All three indexes are poised to decline from 3% to 5% for September.
Bonds also had some relief on Friday, with the yield on 10-year Treasuries retreating from a more than 15-year high. While the 30-year Treasury yield also declined, it remains on track for its largest rise since 2009.