By Investing.com– U.S. stock index futures traded in a muted fashion Friday, consolidating after a rally in technology stocks powered Wall Street to record highs, hit by weaker-than-expected earnings from delivery giant FedEx.
At 05:55 ET (09:55 GMT), Dow Jones Futures rose 15 points, or 0.1%, while S&P 500 Futures dropped 10 points, or 0.2%, and Nasdaq 100 Futures slipped 60 points, or 0.3%.
The Dow Jones and the S&P 500 both closed at record highs on Thursday, with buying spurred largely by optimism over lower interest rates in the wake of the Federal Reserve’s decision to start a rate-cutting cycle on Wednesday.
The S&P 500 rose 1.7%, the NASDAQ Composite surged 2.5%, and the Dow Jones Industrial Average rose 1.3% to 42,025.19 points.
The three major averages are on pace for weekly gains, with the S&P 500 up nearly 1.6%, the DJIA up 1.5%, while the Nasdaq has outperformed, with a 1.9% advance.
Fed outlook in focus
The Fed cut rates by 50 basis points – the upper end of market expectations – and kicked off an easing cycle that is widely expected to see rates drop by a total of 125 bps by the year-end.
Still, the Fed’s medium-to-long term outlook for rates appeared less dovish. Chair Powell said the central bank had no intention of enacting ultra-low rates, and that its neutral rate was likely to be much higher than seen in the past.
The outsized rate cut also raised questions about the state of the U.S. economy, amid recent signs of a severely cooling labor market.
Fedex slides on weak earnings
Delivery and logistics giant FedEx (NYSE:FDX) stock slid 12% premarket after logging substantially weaker-than-expected quarterly earnings.
The company was hit by customers shifting to cheaper, slower options, while industrial demand was also softer than expected.
FedEx is considered as a bellwether for the global economy, given its heavy exposure to trade. Its weak quarterly earnings also raise questions over a potential slowdown in activity.
On the flip side, Nike (NYSE:NKE) stock rose 7% premarket after the athletic apparel firm announced that Chief Executive John Donahoe will set to step down from the position next month.
Donahoe will be replaced by Elliott Hill, who previously spent more than three decades at Nike in various senior leadership roles.
Crude on track for weekly gains
Crude prices slipped lower Friday, but were on track for a second consecutive higher week after the large cut in US interest rates helped quell some fears of slowing demand.
By 05:55 ET, the Brent contract dropped 0.2% to $74.69 per barrel, while U.S. crude futures (WTI) traded 0.2% lower at $71.00 a barrel.
The benchmarks have been recovering after they fell to near three year-lows on Sept. 10, and have registered gains in five of the seven sessions since then, including gains of over 4% this week.
(Ambar Warrick contributed to this article.)
