FX.co ★ US Futures Dip Ahead of Key Data

Futures tied to US equity benchmarks edged lower on Friday, extending the modest declines from the previous session amid growing skepticism over the sustainability of surging AI-related capital spending and concerns that interest rates may remain elevated for longer under the Federal Reserve. Contracts on the three major indices were down about 0.2%.

A slate of economic data due before the opening bell is expected to reinforce the view that the US economy remains resilient. Fourth-quarter GDP is projected to have grown at an annualized 3%, while personal spending is seen maintaining its solid momentum in December, even as both core and headline PCE price indices stay elevated.

An increasing share of rate traders is now pricing in only two or fewer rate cuts for this year, reflecting the recent sharp rise in oil prices and repeated warnings from FOMC officials about the slow pace of disinflation.

High-flying AI-related stocks lost ground, with Nvidia and Meta trading in negative territory in pre-market action. Banks were also under pressure, extending their subdued performance from the previous session.