Nasdaq Futures Boosted by Oil Price Drop and Easing Inflation Worries
Futures for the Nasdaq 100 index led Wall Street higher on Friday, as oil prices dropped for a third consecutive day, easing inflation concerns. The decline in crude prices helped alleviate pressure on the market, which had been worried about price pressures due to supply shocks in the Middle East.
The Dow E-minis were up 62 points, or 0.12%, and S&P 500 E-minis were up 17.5 points, or 0.23% at around 06:43 a.m. ET, while Nasdaq 100 E-minis were up 148.75 points, or 0.5%. The oil price drop was triggered by supply concerns even as Saudi Arabia and Yemen's Iran-backed Houthis exchanged fresh strikes across their border.
The recent interest rate hike from the Federal Reserve and Chair Kevin Warsh's commentary on borrowing costs have been major topics of discussion for investors this week. Top industry executives also urged a slowdown in AI development, which raised concerns about its demand outlook. However, Goldman Sachs' chief US equity strategist Ben Snider believes that S&P 500 earnings growth will decelerate, not collapse, in coming years.
Xenon Pharmaceuticals tumbled nearly 27% premarket after temporarily pausing enrolment in tests for its experimental drug for major and bipolar depression following reports of side effects. Berkshire Hathaway announced that Warren Buffett would step down as chairman and become chairman emeritus, effective immediately. The company's shares were flat in premarket trading.