U.S. stock futures edged higher Friday, offering a modest reprieve after a week of losses as investors continued to assess the impact of elevated energy prices, rising borrowing costs and concerns over the fiscal outlook.
Futures tied to the S&P 500, Dow Jones Industrial Average and Nasdaq 100 each advanced about 0.3% in premarket trading.
Long-term Treasury yields remained elevated even after the Treasury Department announced increased debt buybacks, while the dollar held onto its recent decline. The moves reflected continued investor concern over inflation, government deficit spending and heavy corporate debt issuance.
Chip and AI Stocks Face Steep Weekly Losses
Semiconductor stocks and AI hyperscalers were subdued before the opening bell after suffering significant declines earlier in the week.
Intel, AMD and Seagate were each on track to finish the week roughly 10% lower, while Meta and Broadcom were heading for losses of around 7%.
The retreat has put pressure on a segment of the market that had previously benefited from strong expectations surrounding artificial intelligence infrastructure spending. Higher long-term yields can particularly weigh on technology valuations by increasing financing costs and the discount rates applied to future earnings.
Walmart Slides After Earnings Miss
Walmart was also heading for a weekly decline of about 10% following a rare earnings miss reported Thursday.
The results added to concerns about the strength of the U.S. consumer, particularly as markets assess signs of softer economic momentum alongside persistent inflation and elevated borrowing costs.
Friday’s modest advance in futures has so far done little to erase the week’s losses, leaving Treasury yields, energy prices and the performance of technology shares among the primary drivers heading into the final trading session of the week.
