U.S. equities are positioned for additional gains Friday as oil retreats for a third session and Treasury yields remain below this week’s peaks, extending Thursday’s post-Fed rebound. At 4:50 a.m. ET, Nasdaq 100 futures were up 0.56%, S&P 500 futures were up 0.28% and Dow futures were up 0.16%. Thursday, the Dow gained 0.62%, the S&P 500 rose 1.14%, the Nasdaq advanced 1.69% and the Russell 2000 gained about 0.6%. Friday’s quarterly options and futures expiration could increase trading volume and intraday volatility.
Treasury yields fell sharply Thursday, with the 2-year down 6 basis points to 4.67%, the 10-year down 8 basis points to 4.93% and the 30-year down 7 basis points to 5.28%. The 10-year remains near 4.93% this morning after briefly exceeding 5% earlier this week. The DXY is near 100.3, with the euro around $1.149 and sterling near $1.337. The dollar has jumped toward ¥157.8 despite the Bank of Japan raising its policy rate 25 basis points to 1.25%, its highest level in 31 years, as two dissenting votes reduced expectations for rapid additional tightening.
October WTI fell 1.23% Thursday to $101.17 and is down another roughly 2% near $100.10 this morning. Brent is around $102.70 as Saudi Arabia increases crude shipments through Oman, inventories rise across major consuming regions and China boosts refined-product exports. December gold finished Thursday nearly unchanged at $4,384.50.
Today’s U.S. calendar includes August industrial production and capacity utilization at 9:15 a.m. ET, followed by Fed Vice Chair for Supervision Michelle Bowman at 9:30 a.m. and the Conference Board Leading Economic Index at 10:00 a.m. The Fed’s September projections still point toward additional tightening, while markets currently assign roughly a 55% probability of another quarter-point increase at the October meeting.
Sector Highlights
Sector performance was broadly positive Thursday. Technology led with a 2.20% gain, followed by Consumer Discretionary +1.43%. Utilities gained 0.86%, Health Care +0.64%, Materials +0.62%, Communication Services +0.60%, Energy +0.55%, Real Estate +0.33% and Industrials +0.21%. Consumer Staples slipped 0.01% and Financials fell 0.10%. Breadth was strong, with advancers leading 1.88:1 on the NYSE and 2.31:1 on the Nasdaq.
Information Technology
- Alphabet (GOOGL +~2% premarket) and Nvidia (NVDA +~1%) are leading the megacap rebound as lower oil and stable Treasury yields support growth stocks.
- Intel (INTC +~3% premarket) is extending its recent rally after reports that SK Hynix is exploring U.S. memory-chip production with Intel, potentially using its Ohio manufacturing complex.
- Micron (MU), AMD and Arm (ARM) are also higher premarket as investors return to semiconductor exposure following this week’s AI-driven volatility.
- Apple (AAPL -0.2% premarket) is the lone Magnificent Seven decliner as sales of the iPhone 18 Pro begin globally today. More than 1,600 Apple Store employees in Italy are striking over working conditions, although Apple says stores remain open.
Health Care
- Xenon Pharmaceuticals (XENE -~28% premarket) is plunging after temporarily pausing new enrollment in depression and bipolar-disorder studies of azetukalner following neurological and psychiatric side effects. Patients already enrolled remain on treatment, and Xenon says its epilepsy program is unaffected.
Materials
- Nucor (NUE -~2% premarket) is lower after forecasting third-quarter adjusted EPS below Wall Street expectations. Management expects improvement in its steel mills and steel products businesses but weaker results in raw materials.
Financials
- Coinbase (COIN +~3.2%), Robinhood (HOOD +~3.4%) and Strategy (MSTR +~3.8%) are higher premarket as bitcoin rebounds toward $78,000. Crypto-linked shares are participating in the broader return to higher-beta risk assets following Thursday’s equity rally.
Energy
- Exxon Mobil (XOM), Chevron (CVX), ConocoPhillips (COP) and Occidental Petroleum (OXY) face a softer crude backdrop as WTI falls toward $100. Saudi supply rerouting and higher global inventories are reducing the immediate geopolitical premium, although physical Middle East oil markets remain tight.
