Wall Street showed signs of recovery ahead of Monday’s market opening after a tough week, which was marked by uncertainty over some of President Donald Trump’s recent economic policies. Futures for the S&P 500 rose 0.5%, Dow Jones Industrial Average futures climbed 0.7%, and Nasdaq futures gained 0.4%. On Friday, the S&P 500 experienced a significant drop of 1.7%, its worst day in two months, following weaker-than-expected economic data from the U.S. The Dow Jones lost 1.7%, and the Nasdaq fell 2.2%. Domino’s Pizza saw a 3.3% decrease in early trading after its fourth-quarter earnings missed Wall Street’s expectations, mainly due to slower growth in U.S. sales. Although corporate earnings are slowing down this week, notable companies like Home Depot, Nvidia, and Paramount are still scheduled to report their latest quarterly results.
This week, key economic updates are expected, including the latest consumer confidence data and a revised estimate of the fourth-quarter GDP. Additionally, a highly anticipated inflation report is due on Friday. Stronger-than-expected profit reports have been helping ease concerns about persistent inflation, which could hinder the Federal Reserve’s ability to provide more economic support through rate cuts.
The Federal Reserve has kept its main interest rate unchanged after making significant cuts through the end of last year. During their January policy meeting, Fed officials indicated they may pause rate changes for a while due to concerns that factors like President Trump’s proposed tariffs and mass deportations of migrants could increase inflation. While lower interest rates can stimulate the economy, they can also encourage spending, which can push inflation higher.
In Germany, stocks rose after conservatives won a national election focused on issues impacting Europe’s largest economy. The DAX index climbed 0.7% following preliminary results that showed Friedrich Merz’s mainstream conservative party taking the lead, while a far-right party surged to become the second-largest party in the country.
In Paris, the CAC 40 dropped 0.3%, while the FTSE 100 in the UK remained mostly unchanged. Tokyo’s markets were closed for a holiday. In other Asian markets, Hong Kong’s Hang Seng index fluctuated before closing 0.6% higher at 23,341.61. The Shanghai Composite index fell 0.2% to 3,373.03. Australia’s S&P/ASX 200 rose 0.1% to 8,308.20. South Korea’s Kospi dropped 0.4% to 2,645.27, and Taiwan’s Taiex declined 0.7%. India’s Sensex also fell 0.7%.
