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Feb 28 - Stock index futures rallied on Friday morning ahead of a critical inflation report, following a turbulent trading session on Thursday. S&P 500 futures climbed about 0.5%, Nasdaq 100 futures inched up 0.4%, and Dow futures rose roughly 0.4%, as investors positioned themselves for the incoming economic data, according to a Friday press release.
Yields on U.S. Treasuries showed modest movement, with the 10-year yield dropping one basis point to 4.25% and the 2-year yield remaining flat at 4.06%. The market's earlier selloff was driven by a sharp post-earnings decline at semiconductor leader Nvidia and renewed tariff threats from President Trump. Deutsche Bank's Jim Reid described yesterday's session as one marked by a stressed mood, while UBS's Paul Donovan pointed to social media comments from Trump indicating plans to hike taxes, actions that could increase cross-border purchasing costs.
Inflationary pressures were also underscored by upward revisions in the Federal Reserve's preferred inflation measure, the PCE index, based on the latest Q4 GDP report. Traders now await the January PCE report, expected before the opening bell, which will offer further insight into evolving price pressures and market sentiment.
This article first appeared on GuruFocus.