Key Highlights

  • S&P 500 futures traded 0.25% higher and Nasdaq-100 futures rose 0.5%, while Dow futures added 134 points, or 0.25%, following Thursday's sharp pullback.
  • The S&P 500 and Nasdaq Composite dropped 0.9% and 1% on Thursday, leaving the S&P 500 down 1.9% and the Nasdaq off 2.5% for the week, on pace to snap a three-week winning streak.
  • European markets opened mixed Friday, with the Stoxx 600 near flat, the FTSE 100 up 0.14%, and Germany's DAX and France's CAC marginally lower.
  • Ross Stores shares jumped more than 7% after hours following better-than-expected second-quarter results.

Futures Point Higher After Broad Pullback

Stock futures looked set to rebound early Friday, following a sharp pullback on Wall Street that put the major averages on pace for weekly declines. S&P 500 futures traded 0.25% higher, while Nasdaq-100 futures rose 0.5%. Dow futures added 134 points, or 0.25%.

The S&P 500 and Nasdaq Composite dropped 0.9% and 1%, respectively, on Thursday. That pullback left the S&P 500 down 1.9% for the week and the Nasdaq off by 2.5%, putting them on pace to snap a three-week winning streak. The Dow Jones Industrial Average has fallen 1.8% week to date, on track for back-to-back weekly losses.

Global Markets Trade Mixed

European stocks struggled for direction in early trade Friday, with regional bourses and sectors opening in mixed territory. The pan-European Stoxx 600 index opened just above the flatline, London's FTSE 100 added 0.14%, while Germany's DAX and France's CAC were seen marginally lower.

In Asia, Japan's Nikkei 225 closed 0.30% lower, while South Korea's Kospi rose 0.88%. Australia's benchmark S&P/ASX 200 fell 0.27%. Mainland China's CSI 300 closed 0.57% higher.

Treasury Yields Drove Thursday's Selloff

Thursday's losses came as long-dated US Treasury yields resumed their march higher, after government efforts to stem the recent Bond Market rout failed to ease investor fears about inflation. Market strategists noted that unlike quantitative easing by the Federal Reserve, the Treasury cannot create money to fund asset purchases, meaning any Buybacks must be financed elsewhere, most likely through increased bill issuance or adjustments to other parts of its funding program. Observers said the operation reshapes the Maturity profile of Debt held by investors rather than reducing the amount of debt markets must absorb, and neither removes the government's financing needs nor resolves concerns about Treasury supply.

Ross Stores Rallies on Earnings Beat

Ross Stores shares jumped more than 7% after hours following better-than-expected second-quarter results, offering a bright spot after Thursday's broader market weakness.

Conclusion

The rebound in futures suggests some stabilization after Thursday's selloff, though the major indexes remain on track for weekly losses tied to renewed pressure on long-dated Treasury yields. Whether Friday's gains hold will likely depend on how markets digest the ongoing debate over the Treasury's buyback program and its actual effectiveness in easing yield pressure, alongside any further earnings surprises from retailers like Ross Stores.