U.S. equity futures opened lower on Friday, extending the cautious sentiment following a mixed trading day on Thursday. Major benchmark indices' futures indicated a modest decline as market participants poised for President Donald Trump's announcement regarding his nominee for the Federal Reserve Chair position.
On Thursday evening, during the premiere of the film "Melania," the President confirmed that his choice for the Federal Reserve Chair would be revealed the next day. Market speculation has intensified around this decision, with data from Kalshi, a federally authorized betting platform, highlighting that over $81.6 million has been wagered on the identity of the nominee. Jeremy Warsh currently leads the speculation with a 92% probability of nomination, representing an increase of 59% in his perceived likelihood.
Meanwhile, fixed income markets showed slight movements, with the 10-year Treasury bond yield holding at 4.26% and the two-year bond yield around 3.56%. According to CME Group's FedWatch tool, the market prices in an 84.7% chance that the Federal Reserve will maintain current interest rates in their upcoming March meeting.
| Index | Performance |
|---|---|
| Dow Jones | -0.84% |
| S&P 500 | -0.92% |
| Nasdaq 100 | -1.13% |
| Russell 2000 | -1.51% |
Corresponding to these index movements, the SPDR S&P 500 ETF Trust (SPY), tracking the S&P 500 index, and the Invesco QQQ Trust (QQQ), representing the Nasdaq 100, were both down in premarket trading. The SPY slid 0.82% to $688.32, while QQQ declined 1.05%, settling near $622.80.
Within the corporate sphere, Apple Inc. (AAPL) saw a marginal decrease of 0.34% despite releasing stronger-than-anticipated financial results for the fiscal first quarter of 2026 after Thursday’s market close. Analysis from Benzinga’s Edge Stock Rankings remarks on Apple’s robust long-term price trend while noting current weaknesses in the short and medium terms, coupled with a strong quality ranking.
SanDisk Corp. (SNDK) delivered a notable advance of 20.53% following its presentation of upbeat second-quarter results and the announcement of an extension of its joint venture with Japanese memory manufacturer Kioxia Corp. through the end of 2034. According to Benzinga's rankings, SanDisk maintains a strong price momentum across short, medium, and long-term horizons.
Conversely, Rocket Lab Corp. (RKLB) declined by 4.30% despite successfully executing its 81st Electron rocket launch on January 30. This mission marked the company’s second launch within eight days, successfully deploying KAIST's NEONSAT-1A satellite into a low Earth orbit at approximately 540 kilometers. Benzinga’s evaluation indicates Rocket Lab’s stronger price trend spans all term lengths assessed.
Deckers Outdoor Corp. (DECK) appreciated sharply by 12.85% after announcing record-breaking revenue and earnings for its third quarter. The stock shows a strong performance trend in all measured durations and holds a solid quality ranking per Benzinga’s analysis.
Robinhood Markets Inc. (HOOD) experienced a slight pullback of 0.22% following a surge on Thursday. Reports suggested that the U.S. federal government is considering assigning the company a significant supervisory role concerning "Trump accounts" being developed for children. From a technical perspective, Robinhood exhibits strong long-term price momentum but weaker conditions in short and medium trends, accompanied by a strong growth ranking.
Sector-specific movements included advances in real estate, communication services, and financial stocks within the S&P 500 spectrum. Meanwhile, consumer discretionary and information technology sectors closed lower, reflecting a nuanced market landscape influenced by diverse economic and political considerations.
| Index | Performance | Value |
|---|---|---|
| Dow Jones | +0.11% | 49,071.56 |
| S&P 500 | -0.13% | 6,969.01 |
| Nasdaq Composite | -0.72% | 23,685.12 |
| Russell 2000 | +0.046% | 2,654.78 |
Senior global market strategist Scott Wren from Wells Fargo Investment Institute maintains an overall positive outlook on the U.S. economy and equity markets for 2026. Despite prevailing discourses labeling a "sell America" mentality, Wren forecasts continued economic resilience with a projected U.S. growth rate of 2.4% for the year. This rate, combined with moderating inflation, suggests a favorable environment for equities.
Looking further, Wren expects 2026 to mark the fourth consecutive year of record earnings for the S&P 500 Index. This outlook stems from several key drivers:
- Corporate Fundamentals: Anticipated enhancements in tax policies and deregulation are expected to bolster corporate earnings.
- Sector Innovation: Capital expenditures continue robustly in areas like artificial intelligence as well as advancements in biotechnology and defense sectors, attracting investment.
- Global Investment Leadership: The U.S. market is expected to remain a premier destination for international capital due to its liquidity, rule of law, and market depth.
Economic indicators slated for release on Friday include December’s producer price index at 8:30 a.m. ET and January's Chicago Business Barometer (PMI) at 9:45 a.m. Later in the day, insights from Federal Reserve officials Alberto Musalem and Michelle Bowman are expected through their scheduled speeches.
Commodity markets presented mixed signals as crude oil futures traded down 1.21%, hovering near $64.63 per barrel in the early New York session. Gold spot prices fell approximately 6.18%, trading around $5,040.83 per ounce from prior highs close to $5,595.46. The U.S. Dollar Index ticked up 0.48%, reaching 96.7450. Meanwhile, Bitcoin prices also declined by 6.28% to approximately $82,225.86 per coin.
Asian stock markets showed mostly lower closing values on Friday, with South Korea’s Kospi index as the exception. Indices including Hong Kong’s Hang Seng, China’s CSI 300, Australia’s ASX 200, Japan’s Nikkei 225, and India’s Nifty 50 finished under pressure. Contrarily, European markets started the day predominantly in positive territory.