In the premarket session on Friday, US equity futures experienced a positive uptick as traders positioned themselves before the upcoming release of the Federal Reserve's favored inflation metrics. The Dow Jones Industrial Average futures saw an increase of 0.2%, while S&P 500 futures climbed by 0.5%, and Nasdaq futures showed a robust rise of 0.8%.
Meanwhile, oil prices remained stable with the front-month global benchmark, North Sea Brent crude, maintaining a steady position close to the flatline at $78.81 per barrel. On the other hand, US West Texas Intermediate (WTI) crude experienced a slight decline, falling by 0.1% to settle at $75.81 per barrel.
The economic spotlight will be on personal income data set for release at 8:30 am ET, which analysts are projecting to show an increase of 0.2% in July, aligning with June's rise. Moreover, the core personal consumption expenditures (PCE) price index, the Fed's preferred gauge for inflation, is anticipated to rise by 0.2%, mirroring the recent changes observed over the last month.
At 9:45 am ET, the Chicago Purchasing Managers' Index (PMI) will be in focus, with expectations indicating a slight contraction to 45.0 in August, a decrease from July's reading of 45.3. This could signal a cooling in manufacturing activity, warranting attention from market participants. Additionally, consumer sentiment data, which is scheduled for release at 10 am ET, is expected to remain unchanged from the previous mid-month flash estimate of 67.8, representing the final reading for August.
Traders will be closely monitoring these indicators as they could significantly influence market conditions going forward, emphasizing the delicate interplay between inflationary pressures and economic growth as portrayed through these gauges. The current equity market sentiment suggests a cautiously optimistic outlook, underscored by the anticipation of the forthcoming economic figures.
In this environment, it is crucial to stay informed and adapt trading strategies while acknowledging the potential volatility that may arise with the anticipated data releases..