FX.co ★ U.S. Stocks May Move To The Downside As Traders Digest Inflation Data

Following a session of minimal change, stocks are anticipated to trend downward in early trading on Friday. Major index futures are currently indicating a decline, as evident by the S&P 500 futures dipping by 0.5 percent.

Ongoing concerns regarding interest rate projections may continue to exert downward pressure on Wall Street, following the sharp sell-off observed on Wednesday.

On Wednesday, the Federal Reserve indicated a slower pace for reducing interest rates next year due to signs that progress in curbing inflation has decelerated.

However, futures have recovered significantly from their lowest points after the Commerce Department released a report showing U.S. consumer prices rose slightly less than expected in November.

The Commerce Department reported a 0.1 percent increase in its personal consumption expenditures (PCE) price index for November, following a 0.2 percent increase in October. This was below the 0.2 percent rise economists had anticipated.

The annual growth rate of the PCE price index accelerated to 2.4 percent in November from 2.3 percent in October, marginally below economists' 2.5 percent expectation.

Excluding volatile food and energy prices, the core PCE price index increased by 0.1 percent in November, after a 0.3 percent rise in October, with expectations set at a 0.2 percent increase.

The core PCE price index maintained an annual growth rate of 2.8 percent in November, unchanged from October, contrary to economists' forecasts of 2.9 percent.

These inflation metrics, favored by the Federal Reserve, were part of a broader report on personal income and spending.

Shortly after markets open, the University of Michigan is scheduled to release its final December consumer sentiment report.

The consumer sentiment index for December is projected to remain steady at the preliminary 74.0 reading, an increase from 71.8 in November.

Despite Wednesday's late-session sell-off, stocks experienced a notable rebound in Thursday's early trading. However, buying interest waned, and key averages concluded the day largely unchanged.

The Dow managed to break a ten-day losing streak by rising 15.37 points, or less than 0.1 percent, to 42,342.24. Meanwhile, the Nasdaq fell by 19.92 points, or 0.1 percent, to 19,372.77, and the S&P 500 declined by 5.08 points, or 0.1 percent, to 5,867.08.

In international markets, Asia-Pacific stocks mostly saw declines on Friday. China's Shanghai Composite Index dropped by 0.1 percent, Japan's Nikkei 225 fell by 0.3 percent, and Australia's S&P/ASX 200 tumbled by 1.2 percent.

European markets followed suit with downward movements. Germany's DAX Index is down by 1.3 percent, France’s CAC 40 is lower by 1.1 percent, and the U.K.’s FTSE 100 decreased by 1.0 percent.

In commodity markets, crude oil futures are descending by $0.25 to $69.13 a barrel after falling $0.64 to $69.38 a barrel on Thursday. Gold futures are climbing $12.50 to $2,620.60 an ounce, following a $45.20 drop to $2,608.10 an ounce in the previous session.

On the currency scene, the U.S. dollar is currently trading at 156.46 yen, compared to the 157.44 yen it reached at the close of New York trading on Thursday. Against the euro, the dollar stands at $1.0411, compared to $1.0363 the previous day.