Bargain Hunting May Contribute To Initial Rebound On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to regain ground after moving sharply lower in the previous session.

Bargain hunting may contribute to initial strength on Wall Street, as some traders look to pick up stocks at reduced levels after yesterday's slump dragged the major averages to their lowest closing levels in over three months.

Early buying interest may also be generated in reaction to a pullback by the price of crude oil, with crude for April delivery slumping by 1.6 percent after soaring by nearly 15 percent over the two previous sessions.

The decrease by the price of crude oil comes despite ramped up rhetoric from President Donald Trump, who called the Iranian regime "deranged scumbags" that he has the "great honor" to kill.

The futures saw further upside following the release of a typically closely watched report showing the annual rate of consumer price growth unexpectedly slowed in January.

The Commerce Department said the annual rate of growth by its PCE price index slipped to 2.8 percent in January from 2.9 percent in December. The annual rate of growth was expected to remain unchanged.

Meanwhile, the annual rate of growth by the core PCE price index, which excludes food and energy prices, ticked up to 3.1 percent in January from 3.0 percent in December. Economists had the pace of growth to remain unchanged.

A separate report from the Commerce Department showed U.S. economic growth slowed by much more than previously estimated in the fourth quarter of 2025.

After closing little changed for two straight days, stocks moved sharply lower over the course of the trading session on Thursday. With the steep losses on the day, the major averages dropped to their lowest closing level in well over three months.

The major averages finished the day just off their lows of the session. The Dow plunged 739.42 points or 1.6 percent to 46,677.85, the Nasdaq tumbled 404.16 points or 1.8 percent to 22,311.98 and the S&P 500 slumped 103.18 points or 1.5 percent to 6,672.62.

The sell-off on Wall Street came amid another sharp increase by the price of crude oil, as oil prices further offset the nosedive seen on Tuesday.

International benchmark Brent crude futures for May delivery soared by 9.2 percent, surging back above $100 a barrel

The extended rebound by the price of crude oil came amid reports three more foreign ships were struck in the Persian Gulf overnight, adding to concerns about transit through the strategically vital Strait of Hormuz.

Energy Secretary Chris Wright told CNBC in an interview that the U.S. Navy is "not ready" to escort oil tankers through the strait.

Iran's new Supreme Leader Mojtaba Khamenei also said the Strait of Hormuz must remain closed as a "tool to pressure the enemy."

In U.S. economic news, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended March 7th.

The Labor Department said initial jobless claims slipped to 213,000, a decrease of 1,000 from the previous week's revised level of 214,000.

Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.

Airline stocks extended the nosedive seen over the past two weeks, with the NYSE Arca Airline Index plummeting by 5.2 percent to its lowest closing level in well over three months.

Substantial weakness was also visible among steel stocks, as reflected by the 3.7 percent plunge by the NYSE Arca Steel Index.

Semiconductor stocks also showed a significant move to the downside, dragging the Philadelphia Semiconductor Index down by 3.4 percent.

Oil service, biotechnology and financial stocks also saw considerable, while oil producer stocks bucked the downtrend.

Commodity, Currency Markets

Crude oil futures are slumping $1.64 to $94.09 a barrel after skyrocketing $8.48 to $95.73 a barrel on Thursday. Meanwhile, after slumping $53.30 to $5,125.80 ounce in the previous session, gold futures are edging down $5 to $5,120.80 an ounce.

On the currency front, the U.S. dollar is trading at 159.26 yen versus the 159.33 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1481 compared to yesterday's $1.1510.

Asia

Asian stocks declined on Friday as rising crude oil prices linked to geopolitical tensions rattled investors.

Brent crude prices rose more than 1 percent toward $102 a barrel in Asian trading as concerns over supply disruptions overshadowed news of a record release of emergency reserves by members of the International Energy Agency.

Additionally, the Trump administration has issued its second authorization for buyers to take Russian oil cargoes already at sea and announced it was considering loosening shipping rules in a bid to ease growing pressure on prices.

U.S. Treasury Secretary Scott Bessent said the United States Navy may soon escort oil tankers through the Strait of Hormuz, perhaps with an international coalition.

The dollar hit a three-month high, and gold was little changed below $5,100 an ounce due to shifting Fed rate cut expectations.

Traders await the release of January's Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, later in the day for fresh insights into the rate outlook after overnight data showed the headline consumer price index was steady in February.

China's Shanghai Composite Index fell 0.8 percent to 4,095.45 after a volatile session. Hong Kong's Hang Seng Index ended 1 percent lower at 25,465.60, dragged down by technology stocks.

Japanese markets fell sharply on growing fears that the war in Iran will further crimp energy supplies and boost inflation. The Nikkei 225 Index slumped 1.2 percent to 53,819.61, while the broader Topix Index settled 0.6 percent lower at 3,629.03.

Honda Motor shares slumped 5.6 percent after the automaker warned of its first annual loss in 70 years and announced it would cancel the launches and development of certain models in response to a slowdown in North America's EV market.

Seoul stocks closed lower for a second consecutive session after both U.S. President Donald Trump and Iran's new supreme leader struck defiant tones, with the latter ordering the Strait of Hormuz to remain closed and calling on Gulf Arabs to "shut down" U.S. bases in the region.

The benchmark Kospi tumbled 1.7 percent to 5,487.24, with tech heavyweights Samsung Electronics and SK Hynix both falling over 2 percent. Shares of nuclear energy companies rose after the passage of a special bill on U.S. investment.

Australian markets ended slightly lower as rising bets for interest rate hikes lifted banks and offset weakness in the mining sector. The benchmark S&P/ASX 200 Index edged down 0.1 percent to 8,617.10, while the broader All Ordinaries Index closed 0.1 percent lower at 8,839.10.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,187.34 after a survey showed activity in the country's manufacturing sector continued to expand in February.

Europe

European shares are little changed on Friday but are set for weekly losses as a continued rise in crude prices amid an escalating conflict in the Middle East fueled inflation worries and reduced expectations of near-term Federal Reserve rate cuts.

In economic news, the U.K. economy logged no growth in January, as growth in construction was offset by contraction in industry and flat services activity, the Office for National Statistics reported.

Gross domestic product remained flat after rising 0.1 percent in December and 0.2 percent in November. Economists had forecast a monthly growth of 0.2 percent.

On a yearly basis, the economy expanded 0.8 percent in January, slightly weaker than forecast of 0.9 percent.

Elsewhere, France's annual inflation rate picked up to 0.9 percent in February from 0.3 percent in January.

While the French CAC 40 Index is just below the unchanged line, the German DAX Index is up by 0.1 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent.

Vivendi has tumbled despite the French media giant reporting a significant swing to profitability in the second half of 2025.

Radiator manufacturer Stelrad Group has also slumped after 2025 revenue fell amid subdued demand in the U.K., Ireland and Europe.

Meanwhile, BE Semiconductor shares have jumped on reports that the chip equipment maker has received takeover interest.

U.S. Economic News

Consumer prices in the U.S. increased in line with economist estimates in the month of January, according to a report released by the Commerce Department on Friday.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January after climbing by 0.4 in December. Economists had expected prices to rise by 0.3 percent.

The report also said the annual rate of growth by the PCE price index slipped to 2.8 percent in January from 2.9 percent in December. The annual rate of growth was expected to remain unchanged.

Excluding food and energy prices, the core PCE price index climbed by 0.4 percent in January, matching the increase seen in December as well as economist estimates.

Meanwhile, the annual rate of growth by the core PCE price index ticked up to 3.1 percent in January from 3.0 percent in December. Economists had the pace of growth to remain unchanged.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The report said personal income climbed by 0.4 percent in January after rising by 0.3 percent in December. Personal spending also increased by 0.4 percent in January, matching the growth seen in December.

The Commerce Department released a report on Friday showing new orders for U.S. manufactured durable goods unexpectedly came in flat in the month of January.

The report said durable goods orders were virtually unchanged in January after falling by a revised 0.9 percent in December.

Economists had expected durable goods orders to rise by 0.5 percent compared to the 1.4 percent slump that had been reported for the previous month.

Excluding orders for transportation equipment, durable goods orders climbed by 0.4 percent in January after jumping by 1.3 percent in December. Ex-transportation orders were expected to increase by 0.5 percent.

U.S. economic growth slowed by much more than previously estimated in the fourth quarter of 2025, according to a report released by the Commerce Department on Friday.

The report said gross domestic product increased by 0.7 percent in the fourth quarter compared to the previously estimated 1.4 percent jump. Economists had expected the pace of growth to be unrevised.

The much weaker than previously estimated GDP growth compares to a 4.4 percent surge in the third quarter of 2025.

The Commerce Department said the slower than previously estimates growth reflected downward revisions to exports, consumer spending, government spending, and investment.

At 10 am ET, the University of Michigan is due to release its preliminary reading on consumer sentiment in the month of March. The consumer sentiment index is expected to edge down to 56.2 in March after inching up to 56.6 in February.

The Labor Department is also scheduled to release its report on job openings in the month of January at 10 am ET. Job openings are expected to rise to 6.750 million in January after slumping to 6.542 million in December.