Stock index futures point to a lower open Friday following a strong rally in the previous session, with tech the biggest source of concern.
Nasdaq 100 futures (NDX:IND) -1% are down the most after the index surged 3.5% yesterday in a buy-the-drip frenzy ahead of megacap earnings. But Amazon and Apple are a drag this morning.
Overall, equity sentiment remains “fragile,” Deutsche Bank’s Jim Reid said.
Before the bell, investors will get March personal income and spending numbers, which include the Fed’s favorite inflation gauge. The annual core PCE price index is expected to dip to 5.3%.
April Michigan sentiment arrives after the start of trading. A big rise to 64.1 from 54.3 is seen.
“US Michigan consumer sentiment detail offers the normal entertaining/disturbing insight into the extent of political polarization in the US,” UBS’ Paul Donovan said.
In currency markets, the greenback is retreating a little today after a surge in the previous session.
“As I’ve said before, expanding asset purchases at a time when every other G10 central bank is tightening/tapering is a perfect recipe for currency weakness,” Caxton strategist Michael Brown wrote. “Undoubtedly, the move in the JPY has been a huge one, and has happened at breakneck speed. However, I see little reason to lean against it for now – the MoF are showing little desire to intervene, the BoJ aren’t going to back away from their dovish stance, and the hawks look to be back in control of Treasuries (which remain inversely correlated with the yen).”
The dollar index is at the highest level in two decades.