U.S. equity futures observed notable gains ahead of Friday's market opening as traders absorbed the latest insights from the Federal Reserve regarding inflation metrics. The Dow Jones Industrial Average futures jumped by 0.6%, while S&P 500 futures saw an increase of 0.8%. Nasdaq futures led the charge with a rise of 1.1%, reflecting a positive market sentiment as investors reassess forthcoming economic data. Concurrently, oil prices experienced a decline, with the front-month global benchmark Brent crude oil price decreasing by 0.6%, settling at $81.88 per barrel.
Meanwhile, the U.S. West Texas Intermediate crude saw a 0.5% drop, landing at $77.92 per barrel. The personal consumption expenditure (PCE) price index, a crucial indicator for measuring inflation and favored by the Federal Reserve, was released at 8:30 AM ET. For June, the index recorded a modest increase of 0.1%, aligning perfectly with projections compiled by Bloomberg.
This followed a lackluster reading of flat performance in May. When omitting the volatile food and energy sectors, which significantly influence price variations, the core PCE price index showed an anticipated rise of 0.2% for the month, compared to a previous uptick of just 0.1%. In addition, consumer sentiment metrics, scheduled for release at 10 AM ET, are anticipated to register a final reading of 66 for July, reflecting ongoing consumer willingness to engage in spending despite economic headwinds. Across global markets, Japan's Nikkei index concluded trading at 0.5% lower, while Hong Kong's Hang Seng index slightly advanced by 0.1%.
China's Shanghai Composite index also saw a modest uptick of 0.1%. In contrast, European markets displayed positive momentum; the UK's FTSE 100 exhibited a rise of 0.9%, and Germany's DAX index improved by 0.5% in the early afternoon session. In equities, the day’s notable movers included shares of 3M Company ($MMM), which surged by 6% in pre-market trading following the release of their Q2 results, which surpassed analyst expectations.
Bristol-Myers Squibb ($BMY) also saw a significant boost, as its shares climbed 7% owing to robust Q2 earnings, exceeding market forecasts. However, not all companies fared well in the market. Shares of DexCom ($DXCM) suffered a severe setback, plummeting by 36% after the company revised its 2024 revenue guidance downward, raising concerns among investors about future profitability. As the market continues to react to both economic indicators and corporate earnings, the volatility is expected to keep traders on their toes in the weeks ahead..